The labor supply curve under income maintenance programs

摘要: Abstract The paper is a theoretical analysis of the supply curve labor under particular nonlinear budget constraint arising from earnings-tested income maintenance programs. joint effects benefit, implicit tax on earnings and disregard are analyzed, demonstrating that individual must have backward-bending section discontinuity; changes in above some critical rate no effect supply, aggregate reduction below ambiguous. In absence an disregard, benefit may constitute fixed cost force participation, causing higher reservation wage discontinuity at wage.