Research Paper No. 752

MEANS-TESTED BENEFITS, INCENTIVES AND EARNINGS DISTRIBUTIONS

by

JOHN CREEDY & ROSANNA SCUTELLA

JULY 2000

Department of Economics. University of Melbourne. Melbourne Victoria 3010 Australia

 

CONTENTS

1. Introduction

2. Labour Supply and Earnings

1. A Means-Tested Benefit

2. The Earnings Distribution

3. A Cost of Claiming Benefits

4. Further Complications

3. A Simulation Analysis

1. Simulated Distributions

2. Some General Properties

4. Empirical Distributions

1 . Income Distribution Survey Data

2. Unemployment Benefit Claimants

5. Conclusions

 

 

 

 

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