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Program Cost, Adequacy of Support, and Induced Labor Supply Reduction
Publisher: Mathematica Policy Research
Jan 30, 1978
- Increasing the support level produced a more than proportional increase in the cost of the program, due to higher payments and larger numbers of eligible families.
- Lowering the benefit reduction rate resulted in larger cost differences because it increased the number of participants more than increasing the support level did.
- More generous NIT plans tended to also reduce work effort and labor supply more.
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