ABSTRACT
This chapter presents the results for costs and effects of policy changes. A zero level of assurance represents the effects of child support assurance (CSAS) components except an assured benefit. Since the CSAS effects are affected by the performance of private child support, two assumptions are adopted. The poverty cutoff corresponding to the family size is then compared with a family’s income. The estimated effects of the single program of national health insurance on poverty are greater than those under the CSAS or children’s allowance. Proposed non-income-tested transfers are expected to reduce welfare participation and expenditures. For parents on Aid to Families with Dependent Children (AFDC), the positive effects of non-income-tested transfer on their labor supply behaviors appear substantially strengthened when the programs are combined. The strong upward interaction for the AFDC group brings up an important policy implication. Earned income tax credit participation is expected to increase because some non-workers on AFDC begin to work.
