A Negative Income Tax Experiment

Journal Article
Publisher: Scientific American
Oct 30, 1972
Authors
David Kershaw

Key Findings:

  • There was no evidence of a significant decline in weekly earnings as a result of the payments.
  • Families in the experimental group worked 12 percent fewer hours than families in the control group.  
Would payments to those who earned less than a certain amount reduce their incentive to work? This experiment was the first attempt to answer that question. Initial results of this unusual test indicate no such effect.