Do Income Support Levels and Work Incentives Differ Between Rural and Urban Areas?

Research Report

Do Income Support Levels and Work Incentives Differ Between Rural and Urban Areas?

Abstract

Recent changes in the U.S. income support system have substantially increased the financial incentives for low-income adults to work. In a recent analysis documenting the new structure of work incentives in 13 states, Acs et al. (1998) reported that income transfer benefits to low-income families are high enough so that a full-time, full-year working mother of two children earning only the minimum wage can escape poverty. The analysis showed that work incentives were especially generous to those moving from not working at all to working at a low-wage job.

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