In 1997 the Government of Ontario reformed that province’s welfare system. The reform reduced the amount of welfare payments to a person with no income, but also allowed welfare recipients to keep a larger part of their welfare payments if they did earn some income. a. How does this reform affect the incentive to work? b. How might this reform represent a tradeoff between equity and efficiency?

Answer rating: 100% (QA)

The reform which was introduced by the Government of Ontario will encourage people to work b... View the full answer