A Negative Income Tax Experiment

A Negative Income Tax Experiment

Journal Article
Published: Oct 30, 1972
Publisher: Scientific American
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Authors

David Kershaw

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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