Question

How can policy makers attempt to address the work-incentive problems caused by welfare programs?

How can policy makers attempt to address the work-incentive problems caused by welfare programs?

Homework Answers

Answer #1

Policy makers can attempt to address the work- incentive problems caused by welfare programs with help of following policies:-

Work Requirements:- This method is mainly focused on creating engagement in the work or work-related activities for example training or job search a condition of eligibility for, or ongoing receipt of, benefits


Lifetime limits:- This method restricts the eligibility for various benefits to a certain time period and in some special cases are dependent on the employment status of the participants

Incentives for jobs:- As means-tested programs commonly restrict the level of assistance with the increasing incomes of households which can be developed as a disincentive to work, these programs are made to reduce these disincentives or to reward the employees.

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