Negative Income Tax

Abstract

The general purpose of the four negative income tax (NIT) experiments was to evaluate the impact of a guaranteed income on labor participation. Beyond this general objective, certain subobjectives can be identified, three of which define the purpose of this analysis. The first is to determine what effect an income maintenance experiment program can have on the health and educational status of children from low-income families, the second is to examine the long-range effects of such a program, and the third is to complete a policy analysis using these results to consider the relative effectiveness of service programs and income maintenance programs in promoting child development and stability. The results show that the NIT experiments were effective in reducing a child's risk of being at poverty. The implications of this are discussed from several policy perspectives.

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