Question

Distinguish between Welfare Programs and Work Incentives.

Answer 1

Welfare programmes aims at promotion of welfare of vulnurables, poor , marginal sections and seniour citizens etc. Welfare programmes include soical brnefits, food stamps, subsidies i.e providing loans at cheaper rates to make houses, old age transfers to seniour citizens. Welfare programmes also include reallocation or redistribution of resources from rich to poor without making anyone worseoff.

Work incentives include ways to incentivize the woekers to work for greater number of hours. these include minimum wages, unemployment benefits which offers the person to look job which matches his or her abilities, incresed wage for extra hour worked, lower tax on wage income. Other ways to incentivize people to work include developing capabilities, providing basic elementary and higher education to develop human capital.