Although there is a large literature on the effects of U.S. transfer programs on labor supply, this is the first such study of the Food Stamp Program.

Estimates of effective tax rates on earned and unearned income and estimates of effective guarantees in the AFDC program by state are provided for the period 1967-1982. The results indicate that effective real guarantees fell every year from 1967 to 1981 but stabilized in 1982. Effective tax...