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Effects of SIME/DIME on Changes in Employment Status

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  • Philip K. Robins
  • Nancy Brandon Tuma
  • K. E. Yaeger

Abstract

Ways in which heads of families in the Seattle and Denver Income Maintenance Experiments reduce their labor supply are analyzed in this paper. By estimating transition rates of leaving and entering employment, the authors calculate the effect of the experiment on such measures as the average length of nonemployment, the likelihood of being employed at a given time, the number of entries into and exits from employment within a given period, and the average length of spells of employment. Results indicate that heads of families on experimental negative income tax (NIT) programs have a greater tendency than controls to leave employment. The results also indicate that the NIT programs substantially lengthen spells of nonemployment for all groups studied. All groups also experience a significant decline in the probability of employment as a result of the NIT treatments.

Suggested Citation

  • Philip K. Robins & Nancy Brandon Tuma & K. E. Yaeger, 1980. "Effects of SIME/DIME on Changes in Employment Status," Journal of Human Resources, University of Wisconsin Press, vol. 15(4), pages 545-573.
    • Handle: RePEc:uwp:jhriss:v:15:y:1980:i:4:p:545-573
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    Cited by:

    1. Paci, Pierella, 1999. "A bundle of joy or an expensive luxury : a comparative analysis of the economic environment for family formation in Western Europe," Social Protection Discussion Papers and Notes 20118, The World Bank.
    2. Grossbard-Shechtman, Shoshana, 2003. "A consumer theory with competitive markets for work in marriage," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(6), pages 609-645.
    3. Grossbard, Shoshana, 1993. "On the Economics of Marriage - A Theory of Marriage, Labor and Divorce. Out of print. Published originally by Westview Press in 1993 under name Grossbard-Shechtman," MPRA Paper 81059, University Library of Munich, Germany.

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