EconPapers    
Economics at your fingertips  
 

The EITC and self-employment among married mothers

Katherine Lim () and Katherine Michelmore

Labour Economics, 2018, vol. 55, issue C, 98-115

Abstract: This paper analyzes the impact of the earned income tax credit (EITC) on low-income, non-college educated married mothers’ self-employment behavior. We use a parameterized difference-in-differences approach that captures policy changes at the federal and state level over the last two decades to analyze how the increasing generosity of the EITC has affected married women's self-employment. Results suggest that the average increase in state EITC benefits during that time period increased self-employment behavior of low-income, non-college educated married mothers by 0.9 percentage points. Our measure of self-employment reflects hours spent in self-employment, which we interpret as a real increase in self-employment effort rather than a change in reporting. The findings provide evidence that the EITC can influence workers’ type of employment in addition to their overall labor supply.

Keywords: EITC; Self-employment; Female labor supply (search for similar items in EconPapers)
JEL-codes: H2 I38 J2 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927537118300952
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:55:y:2018:i:c:p:98-115

Access Statistics for this article

Labour Economics is currently edited by A. Ichino

More articles in Labour Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-09-20
Handle: RePEc:eee:labeco:v:55:y:2018:i:c:p:98-115