() and Laurence Jacquet
Craig Brett: Mount Allison University, Postal: Department of Economics,, Mount Allison University,, 144 Main Street, Sackville NB, E4L 1A7, Canada
Laurence Jacquet: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Abstract: This article explores the use of workfare as part of an optimal tax mix when labor supply responses are along the extensive margin. Particular attention is paid to the interaction between workfare and an earned income tax credit, two policies that are designed to provide additional incentives for individuals to enter the labor force. This article shows that, despite their common goal, these policies are often at odds with each other.
18 pages, April 13, 2011
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