Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245636 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14585
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
The Income Maintenance Experiments have received renewed attention due to growing international interest in a Basic Income. Proponents viewed a Negative Income Tax as a replacement for traditional welfare with stronger work incentives and reduced poverty. However, existing labor supply estimates for single parents are uniformly negative. We re-assess the experimental evidence and find randomization failure in two NITs (Gary and Seattle). In Denver and Manitoba, we find a positive labor supply response for those on welfare prior to random assignment. Our results provide strong evidence that a NIT can increase work activity among single parents on welfare.
Subjects: 
negative income tax
welfare
income maintenance experiments
labour supply
JEL: 
C9
I38
J2
Document Type: 
Working Paper

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