TY - CHAP
T1 - Employment effects of the earned income tax credit
T2 - Taking the long view
AU - Schanzenbach, Diane Whitmore
AU - Strain, Michael R.
N1 - Publisher Copyright:
© 2021 National Bureau of Economic Research. All rights reserved.
PY - 2021
Y1 - 2021
N2 - The earned income tax credit (EITC) is the cornerstone US anti-poverty program for families with children, typically lifting millions of children out of poverty each year. Targeted to low-income households with children and only available to those whowork, the EITC contains strong incentives for nonworkers to become employed. Most of the existing economics literature focuses on federal EITC expansions in the 1980s and 1990s. This paper takes a longer view, studying all federal expansions since the program’s inception in 1975. We find robust evidence that EITC expansions increase the extensive margin of labor supply.
AB - The earned income tax credit (EITC) is the cornerstone US anti-poverty program for families with children, typically lifting millions of children out of poverty each year. Targeted to low-income households with children and only available to those whowork, the EITC contains strong incentives for nonworkers to become employed. Most of the existing economics literature focuses on federal EITC expansions in the 1980s and 1990s. This paper takes a longer view, studying all federal expansions since the program’s inception in 1975. We find robust evidence that EITC expansions increase the extensive margin of labor supply.
UR - http://www.scopus.com/inward/record.url?scp=85101205291&partnerID=8YFLogxK
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U2 - 10.1086/713494
DO - 10.1086/713494
M3 - Chapter
AN - SCOPUS:85101205291
T3 - Tax Policy and the Economy
SP - 87
EP - 129
BT - Tax Policy and the Economy
PB - University of Chicago Press
ER -