The Effect of Alternative Partial Benefits Formulas on Beneficiary Part-Time Work Behavior

摘要

The purpose of the study was to assess the effect of partial benefit formulas on the incentive to take part-time work. Two types of partial benefit formulas were examined. Under one earnings are ignored up to a certain amount (the disregard) and further part-time earnings are reduced dollar for dollar. Under the other, the weekly benefit amount is reduced by a fraction of part-time earnings. A model of labor supply was set up and predictions made about part-time work. The predictions were compared with data from the work histories of individuals in the four states. Differences in formulas were found to have no significant effect on the extent of part-time work. The supply of part-time jobs seemed to have more significant effect on part-time work than any other variable.