IDEAS home Printed from https://ideas.repec.org/a/agr/journl/v1(566)y2012i1(566)p41-56.html
   My bibliography  Save this article

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

Author

Listed:
  • Samir AMINE

    (Université du Quebèc en Outaouais and CIRANO, Canada)

  • Pedro LAGES DOS SANTOS

    (University of Le Havre, France)

Abstract

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.

Suggested Citation

  • Samir AMINE & Pedro LAGES DOS SANTOS, 2012. "Negative Income Tax and Labor Market Participation. A Short Run Analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(566)), pages 41-56, January.
    • Handle: RePEc:agr:journl:v:1(566):y:2012:i:1(566):p:41-56
    as

    Download full text from publisher

    File URL: http://store.ectap.ro/articole/676.pdf
    Download Restriction: no
    File URL: http://www.ectap.ro/articol.php?id=676&rid=82
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:1(566):y:2012:i:1(566):p:41-56. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mircea Dinu (email available below). General contact details of provider: https://edirc.repec.org/data/agerrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.