The effect of welfare on labour supply is theoretically ambiguous. The effect of implicit welfare tax rates has not been precisely determined in previous studies. The effective welfare guarantee levels and tax rates estimated for each state from 1979 to 1990. Employing these newly estimated...

The effect of welfare on family size is estimated by means of an ordered probit analysis on low-income, two-parent families. A multiyear cross-sectional pooled data set derived from the US Census Bureau's Current Population Survey over the period 1979-1990 is analysed. Behavioural impacts from a...