Should We Subsidize Work?

Gregory Achs
October 1, 2006

Both welfare reform and the Earned Income Tax Credit (EITC) aimed to reward low-income working families. A new Urban Institute report, Should We Subsidize Work? Welfare Reform, the Earned Income Tax Credit and Optimal Transfers, examines how these policies increased labor force participation and affected low-income families, including their children. It also identifies factors to consider in the policy making process for income transfer programs that subsidize employment earning.