DIAGRAM MUST BE INCLUDED WITH RESPONSE A key concern with designing income transfer programs is the effect they have on

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DIAGRAM MUST BE INCLUDED WITH RESPONSE
A key concern with designing income transfer programs is the
effect they have on recipient’s incentive to work. With the aid of
a standard labour/leisure choice model, illustrate the differences
between the following (one diagram each) on labour, leisure, and
consumption:
• A social assistance program with a 100% clawback rate, and one
with 50% clawback rate;
• A social assistance program with a 100% clawback rate, and a
WITB-type program.