Abstract
Models of the labor-supply behavior of single persons predict that a negative income tax (NIT) will always reduce the labor supply and earnings of such persons. I consider three models of family labor supply and find that, in all three, an NIT might raise a given family member's labor supply and might also raise total family labor supply. In one model, an NIT could even raise total family earnings. These models and recent empirical estimates (showing positive NIT effects on some family members' labor supply and on some families' earnings) suggest that the work disincentive effects and the cost of an NIT may be less that has previously been thought.
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