Expected effects on labor force participation

Reference no: EM1373823

Think a nation with no income maintenance program that enacts an Earned Income Tax Credit similar to United States.

[A] Among all working people, will this program lead to a reduction in hours worked? prove your answer either graphically or mathematically. state all assumptions.

[B] Determine the expected effects on labor force participation according to your model?

[C] What does empirical evidence on the U.S. experience with the Earned Income Tax Credit predict will be the effect of the new policy?

Reference no: EM1373823

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