The Impact of Fiscal Redistributive Policies on the Supply of Labor: Five Essays in Economic Theory and Program Design.

Static and dynamic incentive effects of the following fiscal transfer forms are examined: income subsidy (negative income tax), wage subsidy, categorical income subsidy (work requirement), and overtime wage subsidy. Budgetary costs, aggregate labor-market impacts, and welfare effects are analyzed. A program for categorically combining wage and income subsidies in a comprehensive income-maintenance approach is explored. Extended models of labor supply are studied for their implications about the incentive effects of transfers and the limits of small-scale experimental transfer programs. Job search incentives under various fiscal transfer forms are modelled and compared with empirical findings. Concepts of economic equality and related social welfare functions are examined. Egalitarian fiscal devices such as linear lump-sum transfers and wage tax-subsidies are numerically simulated and theoretically analyzed. (NTIS)