The model deals with channels through which income transfer programs are likely to affect working hours of family members and a method of estimating the labor-supply reactions to income maintenance programs. Labor-supply effects are functions of the duration of a family's participation and the relevant importance of male market investment.…

The standard one-period labor supply model that economists have used is in some ways an inadequate tool to evaluate a Family Assistance Plan (FAP). The principal difficulty is that an FAP will have important interperiod or life cycle effects. The pure life cycle model, an extension of the work of Becker and Ghez, is derived here without reference…