The welfare effects of asset mean-testing income support

Artikel

This paper studies the savings and employment effects of the asset means-test in US income support programs using a structural life-cycle model with productivity, disability, and unemployment risk. An asset means-test incentivizes low-income households to hold few financial assets making them vulnerable to predictable and unpredictable income changes. Moreover, it incentivizes relatively productive households that happen to have few financial assets to leave the labor force. However, it allows for relative generous transfers to households in most need. Moreover, it counteracts relatively productive households leaving the labor force after the age of 50. In terms of the welfare of an unborn household, the asset means-test that optimally trades off these effects is $150,000, and abolishing it is close to optimal.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Quantitative Economics ; ISSN: 1759-7331 ; Volume: 12 ; Year: 2021 ; Issue: 1 ; Pages: 217-249 ; New Haven, CT: The Econometric Society

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs ; Retirement; Retirement Policies
• Thema: incomplete markets ; Means-tested programs ; public insurance

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Wellschmied, Felix
• Ereignis: Veröffentlichung
• (wer): The Econometric Society
• (wo): New Haven, CT
• (wann): 2021

Weitere Informationen

• DOI: doi:10.3982/QE1241
• Handle: http://hdl.handle.net/10419/253576
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ