Income Guarantees and the Working Poor in New York City

Results of an empirical analysis of the effects of proposed income maintenance programs indicate that the Family Assistance Program or similar legislation which does not require the payment of state supplements to those who are not presently on welfare would result in an appreciable although economically tolerable reduction in the supply of low-wage male labor in New York City. However, an attempt by the city or the state to supplement proposed federal programs by supporting families headed by working males at existing city welfare standards would probably be very expensive, both in the direct costs of assistance and the indirect costs associated with reductions in labor supply. The results also provide some evidence that the hours of work of male family heads in New York City are more responsive to changes in economic incentives than the hours of male family heads elsewhere in the nation.