Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If You Use a Screen Reader

This content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.

Changes in AFDC Tax Rates, 1967-1971

Robert M. Hutchens
The Journal of Human Resources
Vol. 13, No. 1 (Winter, 1978), pp. 60-74
DOI: 10.2307/145301
Stable URL: http://www.jstor.org/stable/145301
Page Count: 15
  • Read Online (Free)
  • Download ($17.00)
  • Subscribe ($19.50)
  • Cite this Item
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Changes in AFDC Tax Rates, 1967-1971
Preview not available

Abstract

This paper presents new measures of the implicit marginal tax rate on earnings in the Aid to Families with Dependent Children (AFDC) program. Previous measures suffer from two types of bias. First, they do not adequately control for nonlinear relationships between AFDC payments and earnings. Second, they are estimated in truncated samples. Through explicit consideration of the AFDC payment formula, methods are devised for eliminating both biases. Using these methods, new estimates of AFDC tax rates are obtained for 1967 and 1971. The data reveal that while federal policy caused tax rates to decline in most states, some states counteracted the federal initiative by altering AFDC program parameters.

Page Thumbnails

  • Thumbnail: Page 
[60]
    [60]
  • Thumbnail: Page 
61
    61
  • Thumbnail: Page 
62
    62
  • Thumbnail: Page 
63
    63
  • Thumbnail: Page 
64
    64
  • Thumbnail: Page 
65
    65
  • Thumbnail: Page 
66
    66
  • Thumbnail: Page 
67
    67
  • Thumbnail: Page 
68
    68
  • Thumbnail: Page 
69
    69
  • Thumbnail: Page 
70
    70
  • Thumbnail: Page 
71
    71
  • Thumbnail: Page 
72
    72
  • Thumbnail: Page 
73
    73
  • Thumbnail: Page 
74
    74