[Journal:] IZA World of Labor [ISSN:] 2054-9571 [Year:] 2016 [Issue:] 246
High risk of poverty and low employment rates are widespread among low-skilled groups, especially in the case of some household compositions (e.g. single mothers). “Making-work-pay” policies have been advocated for and implemented to address these issues. They alleviate the above-mentioned problems without providing a disincentive to work. However, do they deliver on their promises? If they do reduce poverty and enhance employment, can we further determine their effects on indicators of well-being, such as mental health and life satisfaction, or on the acquisition of human capital?
making work pay inactivity trap redistribution single mothers earned income tax credit working tax credit