Family Decisionmaking Over the Life Cycle: Some Implications for Estimating the Effects of Income Maintenance Programs.
Purchase Print Copy
| Format | List Price | Price | |
|---|---|---|---|
| Add to Cart | Paperback71 pages | $25.00 | $20.00 20% Web Discount |
A model of the economic determinants of labor supply over the life cycle is derived and compared with the standard one-period model to clarify the circumstances under which each should be used. The appropriate model to analyze a Family Assistance Plan (FAP) is a marriage of the life cycle and the one-period models. This combined model indicates that estimates based on the one-period model: (1) probably underestimate labor supply withdrawal in periods in which families are eligible for FAP benefits; and (2) ignore the possibility of an increase in labor supply in noneligible periods. The model also predicts that an FAP will encourage investments in human capital. An empirical simulation of the effects of an FAP on labor supply confirms one of the major predictions of this theory that an FAP is likely to have a much larger effect on the market work effort of married women than on the work effort of married men. 71 pp. Bibliog.
This report is part of the RAND Corporation Report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.