A Negative Income Tax Experiment
Journal Article
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Key Findings
Key Findings:
- There was no evidence of a significant decline in weekly earnings as a result of the payments.
- Families in the experimental group worked 12 percent fewer hours than families in the control group.
Would payments to those who earned less than a certain amount reduce their incentive to work? This experiment was the first attempt to answer that question. Initial results of this unusual test indicate no such effect.
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