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Economic Response to a Guaranteed Annual Income: Experience from Canada and the United States

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  • Hum, Derek
  • Simpson, Wayne

Abstract

This article reviews research from the five income-maintenance experiments in Canada and the United States. After sketching the historical and political context of the experiments, the authors compare their designs and discuss some important analytic difficulties. Their primary focus is the work-incentive issue, both nonstructural estimates of the experimental effects and elasticity estimates of structural labor-supply functions. The authors provide initial estimates of nonstructural and structural models for the Canadian experiment. They discuss more briefly some non-work-response findings associated with a guaranteed annual income and offer some personal comments on social experimentation and the policy process. Copyright 1993 by University of Chicago Press.

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  • Hum, Derek & Simpson, Wayne, 1993. "Economic Response to a Guaranteed Annual Income: Experience from Canada and the United States," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 263-296, January.
    • Handle: RePEc:ucp:jlabec:v:11:y:1993:i:1:p:s263-96
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