Jump to ContentJump to Main Navigation
Economics of Means-Tested Transfer Programs in the United States, Volume I$
Users without a subscription are not able to see the full content.

Robert A. Moffitt

Print publication date: 2016

Print ISBN-13: 9780226370477

Published to Chicago Scholarship Online: May 2017

DOI: 10.7208/chicago/9780226370507.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 27 July 2021

The Earned Income Tax Credit

The Earned Income Tax Credit

Chapter:
(p.137) 2 The Earned Income Tax Credit
Source:
Economics of Means-Tested Transfer Programs in the United States, Volume I
Author(s):

Austin Nichols

Jesse Rothstein

Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226370507.003.0003

We review research on the Earned Income Tax Credit (EITC), focusing on work appearing since the Hotz and Scholz (2003) review. Recent work has confirmed earlier findings that labor supply effects are positive for single mothers, smaller and negative for married mothers, and essentially nonexistent for men. Where earlier estimates indicated that all responses were on the extensive margin, some recent studies find evidence of non-zero, but small, intensive margin effects. We also review research on the incidence of the credit, suggesting that employers capture some of the program benefits through lower wages; on the large impact of the program on poverty rates and on children’s outcomes; and on families’ apparent preferences for lump-sum refunds over smaller payments distributed throughout the year. We present new evidence regarding the accuracy of EITC imputations in the Current Population Survey. We discuss proposals for reform, including a more generous childless credit, and argue that the EITC may be complementary to the minimum wage, rather than an alternative.

Keywords:   Earned Income Tax Credit, Child Tax Credit, tax credits, in-work safety net, welfare, incidence, participation, work

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.