By Philip K. Robins
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Extra info for A Guaranteed Annual Income. Evidence from a Social Experiment
Income is usually taxed and is often quite easily concealed. As a result, reported income is likely to be subject to both high variance and downward bias. Recent front page articles in the Wall Street Journal indicate a growing awareness of tax avoidance through underreporting of income. ) Peter M. 4%. C. Northcote Parkinson (1960), a classic source of this insight, has observed that government can tax only up to the cost of tax avoidance. If it is cheaper to avoid the tax than to pay it, the individual will choose to avoid.
The direction of the effect of a childcare subsidy is positive, however, suggesting a responsiveness on the part of families to childcare subsidy programs. Part III consists of three chapters directed to the effects on family behavior. In addition to labor supply effects, the other major focus of the NIT program investigated in the income-maintenance experiments is the effect of such programs on incentives to marry and stay married. Chapter 9 examines the data collected to determine the effect of the experimental NIT programs on the establishment and stability of families.
These errors are thought to be small in our sample, so the differ ences between Unemployment Insurance income and SIME/DIME income are considered to be good measures of misreporting in the absolute. The small mean differences which we find are overwhelmingly in the expected directions. That is, all but one of the ί-statistics are negative, indicating underre porting to SIME/DIME relative to the public agency source, or underreporting on the IRF relative to the periodic interview. The differences are statistically significant in 9 of the 30 comparisons, with the largest and most significant dif ferences occurring between the IRF and the public agency reports.
A Guaranteed Annual Income. Evidence from a Social Experiment by Philip K. Robins