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Suppose under TANF your state provides an income guarantee of $5,000 and a benefit reduction rate...

Suppose under TANF your state provides an income guarantee of $5,000 and a benefit reduction rate of 40%. The typical recipient can work up to 2,000 hours per year at a wage of $10 per hour. If the recipient works 300 hours per year, the effective take-home wage rate is:

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