tag:blogger.com,1999:blog-279146381231845671.post2356443335570808014..comments2023-08-16T04:32:23.376-07:00Comments on Bad Outcomes: How I know Work Requirements are MeanRobert H.http://www.blogger.com/profile/09454933755396275755noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-279146381231845671.post-90968717202033948822013-03-14T16:27:51.383-07:002013-03-14T16:27:51.383-07:00It's a good question. Saez argues that the ke...It's a good question. Saez argues that the key insight is whether or not the labor disincentive is concentrated on entry to the labor market or hours worked. If most people will either work 40 hours a week or not work, negative tax rate model may be welfare maximizing. If they are choosing hours worked, then a guaranteed income that is taxed away will be best.<br /><br />He works out a solution with realistic elasticities here: <br /><br />http://qje.oxfordjournals.org/content/117/3/1039.full.pdf<br /><br />When he takes it to data, he will end up mostly agreeing with you. Skip to p.1064 for the punchline.Charlie Clarkehttps://www.blogger.com/profile/02079017903923824877noreply@blogger.com