Question

suppose that to examine the effect of the tanf program on labor supply, researchers were to explore how labor supply by poor households has changed over the past 20 years and then compare that change with changes in the income guarantee over time. this would be an example of:

Answer 1

The study analyzes the impact of TANF on labor supply by comparing household labor supply changes over 20 years with changes in income guarantees, to determine if TANF incentivizes or disincentivizes work among the poor.

Step-by-step explanation:

The study described is an examination of how the Temporary Assistance for Needy Families (TANF) program impacts labor supply among poor households over a period of 20 years, correlating it with changes in the program's income guarantee. This type of study falls into the domain of economics within social studies, as it analyses the relationship between public policy, incentives, and labor supply. To understand the effects of such programs, researchers look at the labor supply by considering the behavior of households and extend their findings as representative of the broader economy. Looking at historical data and policy evolution, such as changes to TANF, helps determine whether these policies create work incentives or disincentives.

For instance, critics argue that TANF could create a poverty trap by disincentivizing work; beyond a certain threshold, additional income can reduce the size of the TANF grant, potentially reducing the willingness to work. However, TANF also provides incentives to work or complete education as a condition for receiving benefits, and it places time limits on benefits with the aim of encouraging labor force participation and reducing dependency on welfare.