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Title:Reforming the Financial Incentives of the Welfare System PDF Logo
Authors:Hamermesh, Daniel S.
Issue Date:2000
Series/Report no.:IZA Discussion paper series 172
Abstract:This paper summarizes the findings from the Self Sufficiency Project: a large scale social experiment that is being conducted in Canada to evaluate the effect of high-powered financial incentives for full time work among former welfare recipients. The experimental results confirm the importance of financial incentives in the welfare participation and work decisions of lowincome single mothers. Enhanced incentives induce a significant fraction of welfare recipients to leave the program and enter work. They also have a relatively large anti-poverty effect. Moreover, when incentives are offered to relatively short-term recipients, they can actually save the government money.
Subjects:Welfare reform
financial incentives
JEL:I38
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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