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Seminar

Welfare versus Work under a Negative Income Tax

Econometrics/Applied Microeconomics seminar

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When

25 October 2021

11:00 - 12:15 CEST

Where

Seminar Room 3rd Floor

Villa La Fonte

In this seminar Professor W. Craig Riddell, University of British Columbia, will present the paper "Welfare versus Work under a Negative Income Tax: Evidence from the Gary, Seattle, Denver and Manitoba Income Maintenance Experiments."

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.

Co-author: Chris Riddell (University of Waterloo)

Due to limited spaces for COVID restrictions, participation on site will be allowed on a first-come, first-served basis. The event will also be live-streamed via zoom. Participants will receive the zoom link once registered.

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