scholarly journals Are There Treatment Duration Differences in the Seattle and Denver Income Maintenance Experiments?

2007 ◽  
Vol 7 (1) ◽  
Author(s):  
Melvin Stephens
Keyword(s):  
Labor Supply ◽  
Income Tax ◽  
Job Training ◽  
Estimated Parameters ◽  
Negative Income ◽  
Income Maintenance ◽  
Supply Model ◽  
Standard Life ◽  
Negative Income Tax ◽  
And Control

Abstract This paper re-examines the labor supply responses in the Seattle and Denver Income Maintenance Experiments (SIME/DIME). Specifically, the original experimental results show a significantly larger labor supply response for men and women from dual-headed households in the five-year Negative Income Tax (NIT) treatment relative to those in the three-year NIT treatment. Although typically thought of only as an NIT experiment, the SIME/DIME also included a job training experiment that enrolled roughly 60 percent of households, including both NIT treatment and control households. The original empirical specification imposed strong assumptions on the treatment response to the job training experiment in order to increase the precision of the estimated parameters. Once these assumptions are relaxed, the labor supply differences between men in the three- and five-year NIT treatments fall by over 50 percent in magnitude and become statistically insignificant. The analogous differences for women are almost entirely explained by these specification changes. Whereas the original findings of the SIME/DIME were inconsistent with the standard life-cycle labor supply model, the results of the re-analysis are mostly consistent with the model.

The Labor-Supply Effects and Costs of Alternative Negative Income Tax Programs

1978 ◽  
Vol 13 (1) ◽  
pp. 3 ◽  
Author(s):  
Michael C. Keeley ◽  
Philip K. Robins ◽  
Robert G. Spiegelman ◽  
Richard W. West
Keyword(s):  
Labor Supply ◽  
Income Tax ◽  
Negative Income ◽  
Negative Income Tax

Forecasting the Effects of a Negative Income Tax Program

ILR Review ◽  
1982 ◽  
Vol 35 (2) ◽  
pp. 221-234 ◽  
Author(s):  
Terry R. Johnson ◽  
John H. Pencavel
Keyword(s):  
Labor Supply ◽  
Income Tax ◽  
Single Women ◽  
Married Women ◽  
Negative Income ◽  
Married Men ◽  
Supply Functions ◽  
Hours Of Work ◽  
The Hours ◽  
Negative Income Tax

This paper outlines a scheme that forecasts the change in net earnings or in hours worked that results from the introduction of a negative income tax (NIT) program. The authors illustrate this scheme by estimating labor supply functions for married men, married women, and single women who participated in the Seattle-Denver Income Maintenance Experiments. These functions are then used to simulate the effects of several NIT programs. The findings suggest that changes in the wage rate of an individual covered by an NIT program result in important changes in the hours of work of the individual's spouse.

Income Tax, Wage Tax, and Optimal Tax

1976 ◽  
Vol 4 (1) ◽  
pp. 3-15
Author(s):  
Eitan Berglas
Keyword(s):  
Labor Supply ◽  
Income Tax ◽  
High Income ◽  
Tax System ◽  
Wage Subsidies ◽  
Optimal Tax ◽  
Negative Income ◽  
Aggregation Problem ◽  
Wage Tax ◽  
Negative Income Tax

Recent studies find wage subsidies (WS) to be superior to negative income tax (NIT). However, these studies suffer from a serious aggregation problem. A model is suggested in which these aggregation problems are avoided. In this model there exists a WS schedule that increases labor supply compared with an equally costly NIT. However, the WS may be Pareto inferior. Furthermore, for high income workers given any income tax system it is always possible to find a wage tax system which both is Pareto superior and increases labor supply. The merits of the model and its implications for other optimal income tax studies are critically discussed.

Welfare Reform and the Labor Market

2018 ◽  
Vol 10 (1) ◽  
pp. 347-381 ◽  
Author(s):  
Marc K. Chan ◽  
Robert Moffitt
Keyword(s):  
Human Capital ◽  
Welfare Reform ◽  
Income Tax ◽  
Theoretical Models ◽  
Empirical Literature ◽  
Negative Income ◽  
Different Types ◽  
Supply Model ◽  
Negative Income Tax ◽  
Welfare Reforms

This article reviews the basic theoretical models that are appropriate for analyzing different types of welfare reforms, as well as the related empirical literature. We first present the canonical labor supply model of a classical welfare program and then extend this basic framework to include in-kind transfers, incomplete take-up, human capital, preference persistence, and borrowing and saving. The empirical literature on these models is presented. The negative income tax, earnings subsidies, US welfare reforms with features that differ from those in other countries, and childcare reforms are then surveyed in terms of both the theoretical models and the empirical literature surrounding each.

Negative Income Tax

1982 ◽  
Vol 3 (2) ◽  
pp. 165-180 ◽  
Author(s):  
NEIL J. SALKIND ◽  
RON HASKINS
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Relative Effectiveness ◽  
Educational Status ◽  
General Purpose ◽  
Negative Income ◽  
Income Maintenance ◽  
Low Income Families ◽  
Negative Income Tax ◽  
The Impact

The general purpose of the four negative income tax (NIT) experiments was to evaluate the impact of a guaranteed income on labor participation. Beyond this general objective, certain subobjectives can be identified, three of which define the purpose of this analysis. The first is to determine what effect an income maintenance experiment program can have on the health and educational status of children from low-income families, the second is to examine the long-range effects of such a program, and the third is to complete a policy analysis using these results to consider the relative effectiveness of service programs and income maintenance programs in promoting child development and stability. The results show that the NIT experiments were effective in reducing a child's risk of being at poverty. The implications of this are discussed from several policy perspectives.

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