The report describes the construction, application, and theoretical implications of an econometric model depicting the effects of labor subsidies on the supply of workers in the U.S. Three papers deal with the following aspects of constructing the econometric model: (1) examination of equilibrium wages, employment, and earnings of primary and secondary workers in eight family types according to the age, sex, and education of the family head; (2) aggregation of primary individuals into reasonably homogeneous wage rate groups not too disparate in size; and (3) development of a dynamic disequilibrium model of the labor market which integrates search-turnover theory with the theory of supply and demand. Three papers deal with the results of simulations of the following programs: (1) the Work Bonus Tax Credit for all families with dependent children; (2) the Jobs and Income (JOIN) Program for low wage individuals; and (3) the Aid to Families with Dependent Children Program. Finally, three papers deal with theoretical analysis: (1) the effects of a progressive income tax on a multi-worker family; (2) the effects of changes in personal income tax parameters on the individual's decision of how to allocate time between labor and leisure; and (3) the effects of increasing payroll taxes on the labor supply. (Author/JR)