The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Anti-poverty Programmes in the United States

  • Robert A. Moffitt
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2731

Abstract

Economic theory suggests that the extent of redistribution should be constrained by its direct and indirect costs, including disincentive effects. The emphasis in the United States has been on programmes that emphasize employment as well as in-kind rather than cash redistribution, and that provide benefits to populations with special needs. Research on their effects has shown them to decrease poverty rates and the poverty gap but to have labour-supply disincentives as well. Reforms to the main cash programme in the 1990s have increased earnings and employment.

Keywords

Aid to Families with Dependent Children (AFDC) (USA) Altruism Anti-poverty programmes in the United States Child care subsidies Crowding out Earned Income Tax Credit (USA) Food stamps Free-rider problem Head Start (USA) In-kind transfers Job Corps (USA) Labour supply Low-income housing policy Marginal utility of consumption Means-tested transfers Medicaid (USA) Negative income tax Poverty gap Supplemental Security Income (SSI) (USA) Temporary Assistance for Needy Families (TANF) (USA) Working Families Tax Credit (UK) 

JEL Classification

H5 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Robert A. Moffitt
    • 1
  1. 1.