A Comparison of the Labor Supply Findings from the Four Negative Income Tax Experiments

Robins, Philip K.

doi:10.2307/145685

Cited by 130 publications

(86 citation statements)

References 6 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In economics they have a much shorter history. Although there have been notable experiments over the years, such as the RAND health care experiment (Manning, Newhouse, Duan, Keeler and Leibowitz, 1987, see the general discussion in Rothstein and von Wachter, 2016) and the Negative Income Tax experiments (e.g., Robins, 1985), it is only recently that there has been a large number of randomized experiments in economics, and development economics in particular. See Duflo, Glennerster, and Kremer (2006) for a survey.…”

Section: Introductionmentioning

confidence: 99%

The Econometrics of Randomized Experiments

Athey

Imbens

2017

Handbook of Economic Field Experiments

479

297

View full text Add to dashboard Cite

In this chapter, we present econometric and statistical methods for analyzing randomized experiments. For basic experiments we stress randomization-based inference as opposed to sampling-based inference. In randomization-based inference, uncertainty in estimates arises naturally from the random assignment of the treatments, rather than from hypothesized sampling from a large population. We show how this perspective relates to regression analyses for randomized experiments. We discuss the analyses of stratified, paired, and clustered randomized experiments, and we stress the general efficiency gains from stratification. We also discuss complications in randomized experiments such as noncompliance. In the presence of non-compliance we contrast intention-to-treat analyses with instrumental variables analyses allowing for general treatment effect heterogeneity. We consider in detail estimation and inference for heterogenous treatment effects in settings with (possibly many) covariates. These methods allow researchers to explore heterogeneity by identifying subpopulations with different treatment effects while maintaining the ability to construct valid confidence intervals. We also discuss optimal assignment to treatment based on covariates in such settings. Finally, we discuss estimation and inference in experiments in settings with interactions between units, both in general network settings and in settings where the population is partitioned into groups with all interactions contained within these groups.JEL Classification: C01, C13, C18, C21, C52, C54

show abstract

Section: Introductionmentioning

confidence: 99%

The Econometrics of Randomized Experiments

Athey

Imbens

2017

Handbook of Economic Field Experiments

479

297

View full text Add to dashboard Cite

show abstract

“…For example, in the Negative Income Tax Experiments (Robins, 1985;Ashenfelter and Plant, 1990), X were the pre-experimental incomes, and families were randomized into the various treatment groups with varying probabilities, but those probabilities were identical for every unit with the same X. Another example is the Moving to Opportunity Experiment (Orr et al, 2003), which investigated the impact of individuals moving to a more economically advantaged neighborhood.…”

Section: Stratified/block Randomizationmentioning

confidence: 99%

Program Evaluation and Research Designs

DiNardo

Lee

2011

Handbook of Labor Economics

View full text Add to dashboard Cite

This chapter provides a selective review of some contemporary approaches to program evaluation. One motivation for our review is the recent emergence and increasing use of a particular kind of "program" in applied microeconomic research, the so-called Regression Discontinuity (RD) Design of Thistlethwaite and Campbell (1960). We organize our discussion of these various research designs by how they secure internal validity: in this view, the RD design can been seen as a close "cousin" of the randomized experiment. An important distinction which emerges from our discussion of "heterogeneous treatment effects" is between ex post (descriptive) and ex ante (predictive) evaluations; these two types of evaluations have distinct, but complementary goals. A second important distinction we make is between statistical statements that are descriptions of our knowledge of the program assignment process and statistical statements that are structural assumptions about individual behavior. Using these distinctions, we examine some commonly employed evaluation strategies, and assess them with a common set of criteria for "internal validity", the foremost goal of an ex post evaluation. In some cases, we also provide some concrete illustrations of how internally valid causal estimates can be supplemented with specific structural assumptions to address "external validity": the estimate from an internally valid "experimental" estimate can be viewed as a "leading term" in an extrapolation for a parameter of interest in an ex ante evaluation. * We are grateful to Diane Alexander and Pauline Leung, who provided outstanding research assistance. We thank Orley Ashenfelter, David Card, Damon Clark, Nicole Fortin, Thomas Lemieux, Enrico Moretti, Phil Oreopolous, Zhuan Pei, Chris Taber, Petra Todd, John Van Reenen, and Ken Wolpin for helpful suggestions, comments, and discussions.

show abstract

“…• women with working partners, and to a lesser extent mothers, are more responsive than others on the extensive margin (Robins, 1985;Eissa and Liebman, 1996) but similar on the intensive margin (Mroz, 1987;Blomquist and Hansson-Brusewitz, 1990). …”

Section: Elasticitiesmentioning

confidence: 99%

“…• labour supply responses tend to be concentrated on the extensive margin (Cogan, 1981;Robins, 1985;Blundell et al, 1987;MaCurdy et al, 1990;Triest, 1990;Zabel, 1993;Blundell, 1995;Eissa and Liebman, 1996) • extensive elasticities are high towards the bottom of the income distribution and very low towards the top (Blundell, 1995;Krueger and Meyer, 2002;Hotz et al, 2003) • intensive elasticities are higher at the very top of the income distribution (Goolsbee, 2000;Gruber and Saez, 2002;Saez, 2004) 19 19 This requires considerable qualification. The finding is in terms of the elasticity of taxable income, not necessarily the intensive elasticity of labour supply (although the results can loosely incorporate this, as mentioned above), and Saez (2004) argues that this effect may be restricted to the top 1% of taxpayers.…”

Section: Elasticitiesmentioning

confidence: 99%

Measuring the marginal efficiency cost of redistribution in the UK

Adam¹

2005

Working Paper Series

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper estimates the marginal efficiency cost of redistribution (MECR) associated with a demogrant and an in-work benefit for the UK since 1979, taking account of extensive as well as intensive labour supply responses. The principal methodological advance in the paper is its greater allowance for heterogeneity in the population than previous work. The rate of tax on consumption expenditure is allowed to vary across households and overall tax rates are allowed to vary across all individuals in all years, using a microsimulation methodology for the calculations. This disaggregation makes a substantial difference to the results.The central finding of the paper is that the MECR is much lower for the in-work benefit policy than the demogrant. The efficiency loss associated with a marginal in-work benefit has consistently been low (and occasionally negative): even at its current 25-year high, the policy would cost losers only £1.30 per pound that the gainers gained. By contrast, losers from a demogrant would currently lose £4.30 per pound that gainers received, higher than at other times over the last 15 years but still well short of the peak of £8.02 seen in 1981. Although precise estimates are highly sensitive to the overall levels of tax rates and elasticities, and also to the composition of the overall labour supply elasticity, the principal finding of a stark contrast between the two policies is robust.The paper also examines the effect of redistribution within family types. The inwork benefit policy looks even more favourable if paid to (and financed by) only singles; it looks less favourable if implemented only for childless couples. Increasing in-work benefits and/or cutting tax rates for lone parents have provided opportunities for Pareto-improving reforms to the tax and benefit system for most of the period since 1979.

show abstract

A Comparison of the Labor Supply Findings from the Four Negative Income Tax Experiments

Abstract: Impact of the Mexican Program for Education, Health, and Nutrition (Progresa) on rates of growth and anemia in infants and young children: A randomized effectiveness study.

Cited by 130 publications

References 6 publications

The Econometrics of Randomized Experiments

The Econometrics of Randomized Experiments

Program Evaluation and Research Designs

Measuring the marginal efficiency cost of redistribution in the UK

Contact Info

Product

Resources

About