Negative Income Tax and Labor Market Participation. A Short Run Analysis

Autor: Samir AMINE, Pedro LAGES DOS SANTOS
Jazyk: angličtina
Rok vydání: 2012
Předmět:
Zdroj: Theoretical and Applied Economics, Vol XIX, Iss 1, Pp 41-56 (2012)
Druh dokumentu: article
ISSN: 1841-8678
1844-0029
Popis: This article examines the effects of the negative income tax, in a matching model, on labor market participation. We show that the introduction of such instrument reduces unemployment and improves the situation of the poorest. But, amazingly, it provokes a fall on labor market participation principally because the agents are then less selective. We find another surprising result: despite the rise on participation, the increasing of unemployment benefits improves the situation of the firms at the expense of workers.
Databáze: Directory of Open Access Journals