【導(dǎo)讀】year.year.demand.labor.Humancapital. Ability,effort,andchance. Signaling. levelsofeducation.workers.on-the-jobtraining.education.occupations.workers.Whyaresomeworkers’wagessetabovethe. equilibrium?

　　

【正文】 s ? Welfare ? Negative ine tax ? Inkind transfers Copyright 169。 2020 SouthWestern MinimumWage Laws ? Advocates view the minimum wage as a way of helping the working poor. ? Critics view the minimum wage as hurting those it is intended to help. Copyright 169。 2020 SouthWestern MinimumWage Laws ? The magnitude of the effects of the minimum wage depends on the elasticity of the demand for labor. Copyright 169。 2020 SouthWestern MinimumWage Laws ? Advocates argue that the demand for unskilled labor is relatively inelastic, so that a high minimum wage depresses employment only slightly. ? Critics argue that labor demand is more elastic, especially in the long run when firms can adjust employment more fully. Copyright 169。 2020 SouthWestern Welfare ? The government attempts to raise the living standards of the poor through the welfare system. ? Welfare is a broad term that enpasses various government programs that supplement the ines of the needy. ? Temporary Assistance for Needy Families (TANF) ? Supplemental Security Ine (SSI) Copyright 169。 2020 SouthWestern Negative Ine Tax ? A negative ine tax collects tax revenue from highine households and gives transfers to lowine households. Copyright 169。 2020 SouthWestern Negative Ine Tax ? Highine families would pay a tax based on their ines. ? Lowine families would receive a subsidy—a “negative tax.” ? Poor families would receive financial assistance without having to demonstrate need. Copyright 169。 2020 SouthWestern InKind Transfers ? Inkind transfers are transfers to the poor given in the form of goods and services rather than cash. ? Food stamps and Medicaid are examples. Copyright 169。 2020 SouthWestern InKind Transfers ? Advocates of inkind transfers argue that such transfers ensure that the poor get what they most need. ? Advocates of cash payments argue that inkind transfers are inefficient and disrespectful. Copyright 169。 2020 SouthWestern Antipoverty Programs and Work Incentives ? Many policies aimed at helping the poor can have the unintended effect of discouraging the poor from escaping poverty on their own. Copyright 169。 2020 SouthWestern Antipoverty Programs and Work Incentives ? An antipoverty program can affect work incentives: ? A family needs $15,000 to maintain a reasonable standard of living. ? The government promises to guarantee every family a $15,000 ine. ? Any person making under $15,000 has no incentive to work due to the effective marginal tax rate of 100 percent. Copyright 169。 2020 SouthWestern Antipoverty Programs and Work Incentives ? Workfare refers to a system that would require any person collecting benefits to accept a governmentprovided job. Copyright 169。 2020 SouthWestern Antipoverty Programs and Work Incentives ? A 1996 welfare reform bill advocated providing benefits for only a limited period of time. Copyright 169。 2020 SouthWestern Summary ? Data on the distribution of ine show wide disparity in our society. ? The richest fifth of the families earns about ten times as much as the poorest fifth. ? It is difficult to gauge the degree of inequality using data on the distribution of ine in a single year. Copyright 169。 2020 SouthWestern Summary ? Political philosophers differ in their views about the role government should play in redistributing ine. ? Utilitarians would choose the distribution of ine to maximize the sum of the utility of everyone in society. Copyright 169。 2020 SouthWestern Summary ? Liberals would determine the distribution of ine as if we were behind a “veil of ignorance” that prevented us from knowing our own stations in life. ? Libertarians would have the government enforce individual rights but not be concerned about inequality in the resulting distribution of ine. Copyright 169。 2020 SouthWestern Summary ? Various policies aimed to help the poor include: minimumwage laws, welfare, negative ine taxes, and inkind transfers. ? Although each of these policies helps some families escape poverty, they also have unintended side effects