The decrease in the incentive to work created by welfare payments programs

Name: The decrease in the incentive to work created by welfare payments programs
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Question

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Welfare payments can decrease the incentive to work for both taxpayers, who may see their taxes increase to fund welfare programs, and welfare recipients, who might reduce their work effort if welfare benefits decrease as their earnings increase. This creates a disincentive for both groups, albeit for different reasons.

The Decrease in the Incentive to Work Created by Welfare