Husband-Wife Interactions and Changes in Employment Status

摘要

Most earlier studies of the labor supply effects of a negative income tax (NIT) have assumed that one family head's labor supply response is independent of his/her spouse's labor supply. This study examines the interdependence of labor supplied by husbands and wives in the Seattle-Denver Income Maintenance Experiment, and compares implications of analyses that do and do not allow this interdependence. The authors' findings support their contention that the effect of the NIT on family head's labor supply is influenced by spouse's employment status.