Estimating Labor Supply Disincentives of a Negative Income Tax: Some Results and Lessons from the Experiments
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Key Findings
Key Findings:
- The income maintenance experiments improved knowledge of responses to a negative income tax, but knowledge of the response to other potential plans was not greatly improved.
- The experiments were not a substitute for advances in modeling techniques needed to analyze labor supply under tax and transfer programs.
This paper reports the basic work disincentives found in the experiments and reviews the variety of labor-supply models used in analyzing the data.
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