WELFARE-REFORM, DEPENDENCY REDUCTION, AND LABOR-MARKET ENTRY

Dependency reduction requires altering the welfare incentive structure : reducing the rewards for nonwork and increasing the rewards for work . Requiring welfare recipients to work in exchange for welfare benefit s reduces the attractiveness of welfare and is crucial to dependency r eduction. However most current workfare programs impose minimal requir ements on welfare recipients and are ineffectual. This paper proposes methods for improving workfare as well as other reforms.