Social assistance in Germany reduces the incentive to work. TheU. S. Welfare to Work Programme tries to avoid such disincentives. It consists essentially of two elements: the Earned Income Tax Credit (EITC) for employees in low wage occupations and a Workfare model. The EITC and the Workfare...

In this paper, I first summarize how the US Earned Income Tax Credit (EITC) operates and describe the characteristics of recipients. I then discuss empirical work on the effects of the EITC on poverty and income distribution, and its effects on labor supply. Next, I discuss a few policy concerns...

This paper develops a labor-market orientated expected utility model to explain the massively high level of non-marital fertility, especially teenage single motherhood in the United States in the period 1960-1980. Labor market regulations reduce, via disemployment, male youth income-earning...

This testimony makes three main points. First, income volatility, especially when it involves income declines, imposes significant hardships on American families. It heightens stress about finances and may increase household living expenses. These hardships are most pronounced for middle-and...

This study develops and estimates a model of the naturalization process in the US. The model is based on both the characteristics of immigrants and features of their countries of origin. The empirical analysis is based on the 2000 US Census. Both the characteristics of immigrants and the...

This paper examines how exogenous income transfers during adolescence affect contemporaneous body mass index (BMI) measures and young adult obesity rates using evidence from the Great Smoky Mountains Study of Youth. The effects of extra income differ depending on the households' initial...

The Earned Income Tax Credit (EITC) is the largest anti-poverty program in the U.S. In 1993, the EITC benefit levels were changed significantly based on the number of children in the family such that families with two or more children experienced an exogenous expansion in their incomes. Using...

This study investigates the effects of welfare reform in the U.S. in the 1990s, which dramatically limited cash assistance for low-income families, on the next generation as they transition to adulthood. We estimate effects by gender and focus on behaviors that are important for socioeconomic...

The importance of knowledge and skills in meeting new challenges in production and distribution is particularly evident in today’s market, which is characterized by a saturation of products and strong competition. To be successful in the market, companies must stand out and be creative and...

Should managers be liable for ill-conceived business decisions? One answer is given by U.S. courts, which almost never hold managers liable for their mistakes. In this paper, we address the question in a theoretical model of delegated decision making. We find that courts should indeed be lenient...