Sunday, 22 November 2015

Does helping the poor keep them from working?

Economists tested 7 welfare programs to see if they made people lazy. They didn't. - Vox:

"For as long as there have been government programs designed to help the poor, there have been critics insisting that helping the poor will keep them from working. But the evidence for this proposition has always been rather weak. And a recent study from MIT and Harvard economists makes the case even weaker. Abhijit Banerjee, Rema Hanna, Gabriel Kreindler, and Benjamin Olken reanalyzed data from seven randomized experiments evaluating cash programs in poor countries and found "no systematic evidence that cash transfer programs discourage work." Attacking welfare recipients as lazy is easy rhetoric, but when you actually test the proposition scientifically, it doesn't hold up."

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