Welfare Dependence and Self-Control: An Empirical Analysis

• 成果类型: Article
• 署名作者: Chan, Marc K.
• 署名单位: University of Melbourne
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdx011
• 发表日期: 2017
• 页码: 1379-1423
• 关键词: model; LABOR; PARTICIPATION; inconsistency; program; CHOICE; REFORM; IMPACT

摘要

A hyperbolic discounting model of labour supply and welfare participation with heterogeneous time preference parameters is estimated. Exclusion restrictions are constructed from variations in behaviour induced by time limits in a welfare reform experiment. We find that most individuals are time-inconsistent, and they exhibit varying degrees of present bias and perception of the commitment problem. Introducing a welfare component to the tax system can make individuals worse off by aggravating the commitment problem. Certain dynamic policy interventions carry sizeable commitment-related work incentives; for instance, a dynamic sanction triggered by past employment can be preferred by some individuals as a commitment device.