Lanzi, Diego ; Delbono, Flavio
(2002)
Optimal Participation Income
and Negative Income Tax
in Poverty Alleviation Programs.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 10.
DOI 10.6092/unibo/amsacta/4844.
In: Quaderni - Working Paper DSE
(451).
ISSN 2282-6483.
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Abstract
We compare two different redistributive policies specifically designed to alleviate poverty. The first one is inspired to the idea of participation income, the second focused on the introduction of a negative income tax. Briefly characterizing an economy with workers and non-workers and using income as evaluation space for poverty, we determine optimality conditions of both measures under a flat rate labor income tax. Finally, we emphasize a necessary condition for these measures to mitigate poverty.
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