CBO‘s Justin Falk finds that Alabama’s work requirement increases the employment rate by about 12 percentage points over the first year after families enter the program, which elevates average income by boosting earnings and tax credits. But the requirement reduces the amount of cash assistance families receive, primarily by removing nonworking families from the program. On net, my analysis suggests that average income increases, but so does the frequency with which families have neither earnings nor cash assistance. Those results are inferred from families whose youngest child is between 6 months and 11 months old, although I find suggestive evidence that the results generalize to families with older children.
- Date Posted:
- April 19, 2023