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You mention many things that can influence a person's employment decisions: their desire to earn ever more, outside debts, legal issues, difficulty making ends meet, teenagers ready to accept the job offers before they do. To focus on the question of whether a welfare benefit allows low-paying employers to pay employees even lower salaries, I think we have to assume that all these other factors are identical in both cases (with or without the welfare benefit). All else being equal, does the presence of welfare income influence people toward accepting lower salaries?