Abstract
Using a simulation model for a small open economy (Québec 1986), various Negative Income Tax (NIT) and workfare schemes are compared from the point of view of efficiency and equity. The main finding is that there exist workfare schemes that are superior both to the Québec regime of 1986, and to a NIT characterized by a 100 percent implicit tax rate. However, these workfare schemes are dominated by some NIT programs. This suggests that it may be necessary to have work requirements that vary across socio-demographic classes for a workfare plan to be superior to any NIT. Combining workfare with an NIT could also be the prescription.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
