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Program Participation and Labor-Supply Response

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  • Philip K. Robins
  • Richard W. West

Abstract

In this paper, a model of participation in the Seattle and Denver Income Maintenance Experiments (SIME/DIME) is developed and estimated. The model explains why a family chooses to receive negative income tax (NIT) payments, chooses to remain in the experiment but not receive payments, or chooses to leave the experiment (attrition). It is assumed that an individual selects the option that yields the greatest amount of utility. The empirical formulation of the model relates program participation to experimentally induced changes in wage rates, nonwage income, and disposable income, and several nonexperimental variables. Based on the participation results, a model of labor supply with varying participation rates is specified and estimated.

Suggested Citation

  • Philip K. Robins & Richard W. West, 1980. "Program Participation and Labor-Supply Response," Journal of Human Resources, University of Wisconsin Press, vol. 15(4), pages 499-523.
  • Handle: RePEc:uwp:jhriss:v:15:y:1980:i:4:p:499-523
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    Cited by:

    1. Richard Cebula & Christopher Coombs, 2008. "Recent Evidence on Factors Influencing the Female Labor Force Participation Rate," Journal of Labor Research, Springer, vol. 29(3), pages 272-284, September.
    2. Cox, Donald & Jakubson, George, 1995. "The connection between public transfers and private interfamily transfers," Journal of Public Economics, Elsevier, vol. 57(1), pages 129-167, May.
    3. James Heckman & Lance Lochner & Ricardo Cossa, 2002. "Learning-By-Doing Vs. On-the-Job Training: Using Variation Induced by the EITC to Distinguish Between Models of Skill Formation," NBER Working Papers 9083, National Bureau of Economic Research, Inc.
    4. 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.
    5. repec:eee:labchp:v:1:y:1986:i:c:p:3-102 is not listed on IDEAS
    6. Frank Stafford, 1985. "Income-Maintenance Policy and Work Effort: Learning from Experiments and Labor-Market Studies," NBER Chapters,in: Social Experimentation, pages 95-144 National Bureau of Economic Research, Inc.

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