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

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 principa...

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Bibliographic Details
Main Authors: Samir AMINE, Pedro LAGES DOS SANTOS
Format: Article
Language:English
Published: General Association of Economists from Romania 2012-01-01
Series:Theoretical and Applied Economics
Subjects:
Online Access: http://store.ectap.ro/articole/676.pdf