Problem
A state government wants to provide incentives for single parents to enter the labor market and become employed. It is considering a policy of paying single parents of children under age 18 $20 per day if the parent works at least 6 hours a day, 5 days a week. Draw an assumed current daily budget constraint for a single parent and then draw in the constraint that would be created by the $20 subsidy. Discuss the likely effects on (a) labor force participation and (b) hours of work.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.