Why might self targeting in a workfare program fair to prevent benefits from leaking to non-poor households?
A) If wages are set too low
B) If some members of a non-poor household have little opportunity to earn income in alternative activities
C) If some members of a non-poor household have many opportunities to earn income in alternative activities
D) If the means tests fail to weed out the non-poor households

Question

Quizplus · Accepted Answer

If some members of a non-poor household have little opportunity to earn income in alternative activities, they may turn to participating in the workfare program even if they do not meet the poverty criteria. By targeting self-selection, these individuals will not participate, reducing the risk of benefits leaking to non-poor households. Option A refers to low wages which may discourage participation, but it does not necessarily prevent benefits from leaking to non-poor households. Option C is the opposite scenario, where many alternative income opportunities may also discourage participation but does not prevent benefits from leaking. Option D refers to means tests failing to weed out non-poor households which is a failure in the targeting system, rather than the self-targeting aspect of the program.

Why Might Self Targeting in a Workfare Program Fair to Prevent