Employment Effects of the Earned Income Tax Credit: Taking the Long View

Diane Schanzenbach and Michael Strain

No 28041, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The Earned Income Tax Credit (EITC) is the cornerstone U.S. 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 who work, the EITC contains strong incentives for non-workers 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.

JEL-codes: H2 J08 J2 (search for similar items in EconPapers)
Date: 2020-10
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Published as Employment Effects of the Earned Income Tax Credit: Taking the Long View , Diane Whitmore Schanzenbach, Michael R. Strain. in Tax Policy and the Economy, Volume 35 , Moffitt. 2021

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Journal Article: Employment Effects of the Earned Income Tax Credit: Taking the Long View (2021)
Chapter: Employment Effects of the Earned Income Tax Credit: Taking the Long View (2020)
Working Paper: Employment Effects of the Earned Income Tax Credit: Taking the Long View (2020)
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