ERIC Number: ED081971
Record Type: RIE
Publication Date: 1971-Aug
Reference Count: N/A
The Supply of Labor and the Incentive Effects of Income Maintenance Programs.
Rea, Samuel Arthur, Jr.
The theory of labor supply is analyzed with special attention to the relation between labor supply and unemployment. Techniques for simulating the effects of transfer programs are developed. The literature on the supply of hours and the effects of income taxes, Social Security, and public assistance is reviewed. Supply functions for those age 25 and over are estimated, and the supply response to eleven alternative negative income tax plans is simulated. A $2400 guarantee for a family of four with a 50% tax rate is estimated to reduce hours supplied by the recipients by 12% and decrease the number in the labor force by 21%. The Social Security retirement test is found to have no effect on hours supplied. (Author)
Descriptors: Economic Research, Guaranteed Income, Labor Supply, Motivation, Simulation, Unemployment, Working Hours
National Technical Information Service, Springfield, Va. 22151 (PB-202 351, MF $1.45, HC $3.00)
Publication Type: N/A
Education Level: N/A
Sponsor: Manpower Administration (DOL), Washington, DC. Office of Research and Development.
Authoring Institution: Harvard Univ., Cambridge, MA. Dept. of Economics.
Note: Ph.D. Dissertation, Harvard University