Accession Number:

AD0738036

Title:

The Impact of Income Maintenance Programs on Hours of Work and Incomes of the Working Poor: Some Empirical Results,

Descriptive Note:

Corporate Author:

RAND CORP SANTA MONICA CALIF

Personal Author(s):

Report Date:

1970-12-01

Pagination or Media Count:

14.0

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.

Subject Categories:

  • Sociology and Law

Distribution Statement:

APPROVED FOR PUBLIC RELEASE