Between 1968 and 1980 the US “Office of Economic Opportunity (OEO)” conducted four negative income tax experiments. Analysed were small groups of families that were at high risk of extreme
poverty in terms of their willingness to work, their health, educational success of children and other parameters.
While paid employment was slightly declining by 13%, by almost equal parts each for the primary, secondary and tertiary earner of the household, the health and academic success of the children
improved, school attendance of children increased and there was a direct impact on test scores. The willingness to work sank from 0.5 to 9 per cent for male primary earners and by up to 30% for
married women and single mothers (Levine, et al., 2005). However, there are strong variations behind these numbers and it is likely that the limited duration of the projects provoked or has
suppressed certain behaviour.
