REPORTED FROM VOX.COM. Harking back to old experiments in the 70s, this town in looking to try a negative income tax approach. Read the article here.
Negative income tax experiments in the US and Canada in the 1970s found that work effort declined when a negative income tax was imposed, as predicted, but that the effect was quite small. Moreover, most of the reduction in work effort appeared to come from people taking longer stints of unemployment. That can be a bad thing, but it can also mean that people aren’t settling for second-best jobs and holding out for ones that are better fits for them. That’d actually be good, economically. Additionally, the work effect reduction for young people appeared to come entirely from increased school attendance— also a desirable outcome.