Theoretical and Applied Economics
No. 1 / 2012 (566)
Negative Income Tax and Labor Market Participation. A Short Run Analysis
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.
Contents
Testing the Asymmetry of Shocks with Euro Area
The Population and the Labor Force Market
Negative Income Tax and Labor Market Participation. A Short Run Analysis
The Industry – a Vulnerable Source of Economic Recovery in Romania
Sustainable Development of South-West Oltenia Region in the Current Economic Crisis
The New and the Future Look of the Economy
The Spread of Economic Ideas among Romanian People. Case Study: Alexandru D. Xenopol
Using Quantitative Data Analysis Techniques for Bankruptcy Risk Estimation for Corporations
The New Governance and Globalization
The Political Economy of World Heavyweight Boxing during the Great Depression