The Impact of Income Maintenance Programs on Hours of Work and Incomes of the Working Poor: Some Empirical Results,
Abstract
Negative income tax programs are discussed in regard to how they affect work incentives in two ways, both of which tend to reduce the labor supply. First, they pay a subsidy to participating families. Second, they impose a tax rate on earnings, which encourages those who are taxed to reduce their work effort. The first program effect on incentives is called an income effect and the second a substitution effect.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1970
- Accession Number
- AD0738036
Entities
People
- David H. Greenberg
- Marvin Kosters
Organizations
- RAND Corporation