and high welfare dependency, such as lone mothers, were vastly overrepresented among the poor. This motivated a workfare … once. We find that the workfare reform did not only increase earnings and education as well as lower welfare caseloads and … by this route ease the financial burden of the government, but also reduced poverty. …

In-work transfers are often seen as a good trade-off between redistribution and efficiency, as they alleviate poverty … poverty effects of alternative policies are analyzed thanks to counterfactual simulations built using a micro-simulation model …