The major purpose of this paper is to examine the problems of geralizing from the Graduated Work Incentive experimental setting to the national labor-supply responses that would be generated by a negative income tax that replaced existing welfare programs for families headed by able-bodied males. (Author/BP)

While static economic theory predicts that most income transfer programs will lead to reductions in the labor supply of program beneficiaries, the theory has nothing to say about the magnitude of such reductions. In order to predict the magnitude of such reductions, the labor supply schedule of potential beneficiaries must be known. In previous…

While static economic theory predicts that most income transfer programs will lead to reductions in the labor supply of program beneficiaries, the theory has nothing to say about the magnitude of such reductions. In order to predict the magnitude of such reductions the labor supply schedule of potential beneficiaries must be known. In three…