The Effects of the EITC and Recent Reform
No 910, Working Papers from Harris School of Public Policy Studies, University of Chicago
In this paper, I first summarize how the U.S. Earned Income Tax Credit (EITC) operates and describe the characteristics of recipients. I then discuss empirical work on the effects on hours of work and marriage, and problems of compliance with the tax system. I then simulate the effects of the recent expansion of the credit for families with three or more children that were part of the American Recovery and Reinvestment Act of 2009. I also reexamine the key assumptions of past work on the labor supply effects of the EITC. Finally, I briefly discuss the likely effects of further expanding the credit to non-custodial parent, as has been recently done in two jurisdictions.
Keywords: Earned Income Tax Credit; compliance; simulate; labor supply; American Recovery and Reinvestment Act of 2009; credit (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://harrisschool.uchicago.edu/about/publication ... apers/pdf/wp0910.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:har:wpaper:0910
Access Statistics for this paper
More papers in Working Papers from Harris School of Public Policy Studies, University of Chicago Contact information at EDIRC.
Bibliographic data for series maintained by Eleanor Cartelli (). This e-mail address is bad, please contact .