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Abstract

Excerpt from the Executive Summary: This report presents results from an econometric study of the effects of the Food Stamp Program on work effort. A model of the house-hold's joint decision regarding market labor and participation in the Food Stamp and AFDC programs is specified and estimated on a sample of female heads of households with dependent children. Estimates of the model's parameters are used to predict how work effort and program participation would be affected by selected hypothetical changes in rules governing food stamp benefit amounts. The feedback effects of these responses on average and aggregate benefit levels are also examined.

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