00:01
We're going to look at two of the income security programs in the u .s.
00:05
The temporary assistance for needy families, tanf, and the earned income tax credit, the eitc.
00:12
When a woman with children and very low income earns an extra dollar, she receives less than tanf benefits.
00:19
What do we think this is the effect of this feature of tanf on the labor supply of low income women? so one of the important features of the tanf program is that when a woman with children and very low income earns an extra dollar, she receives fewer benefits under the program.
00:36
It's actually a dollar for dollar program.
00:38
So for every dollar increase in her wage, she receives one less dollar in benefits.
00:45
This, therefore, discourages her from working more as it would negatively impact her tanf benefits.
00:51
Because unless she can earn such an amount to like totally overly compensate for that, there's not an upside to working more and jeopardizing her benefits, especially if she has children...