The Effects of Experimental Negative Income Tax Programs on Marital Dissolution: Evidence from the Seattle and Denver Income Maintenance Experiments

Michael C Keeley

International Economic Review, 1987, vol. 28, issue 1, 241-57

Abstract: This paper analyzes the effects of Negative Income Tax (NIT) Programs on marital stability. A household production model is used to show that the rate of marital dissolution should depend negatively on the increase in non labor income and positively on the decrease in the net (of tax) wage that is caused by an NIT. These hypotheses are tested employing an experimental impact mode l that uses data from the Seattle and Denver Income Maintenance Experiments. The empirical findings suggest that the rate of marital dissolution is sensitive to these parameters in a manner consistent with the hypotheses. Copyright 1987 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Date: 1987
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