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In the 1990's welfare reform was enacted. It required those already receiving benefits to find jobs in order to continue to be eligible to receive
In the 1990's welfare reform was enacted. It required those already receiving benefits to find jobs in order to continue to be eligible to receive welfare benefits. As a result, many single mothers were forced to find jobs. For the most part, these single mothers entered the market for unskilled labor. The figure below shows the market for unskilled labor before the welfare reform. Use the copy tool to show the impact of this welfare reform on the market for unskilled labor. Label the new curve(s) you draw Demand 2 and/or Supply 2. Use the double drop line tool to show what happens to wages and to the employment of unskilled labor after the welfare reform and label this outcome as Equilibrium 2. Demand 1 Demand 2 Supply 1 Supply 2 Equilibrium 1 Equilibrium 2 Unselected Answer: The effect of the welfare reform was to increase the supply of labor. You should illustrate this by using the copy tool to add a new labor supply curve to the right of the original curve and label it as Supply 2. There is no change to the demand for labor. The intersection of the new labor supply curve and the original labor demand curve is the
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