Tax Policy and the Economy · 2021 · 96 citations · 24 references
Public AffairsEconomicsPublic PolicyChild WelfareFiscal PolicyLabor EconomicsEmployment SubsidiesHousehold EconomicsIncome RedistributionTax CreditsTax Credits For Low-income HouseholdsWork IncentivesAnti-poverty ReformChild Poverty AlleviationEarned Income Tax Credit PolicyEmployment Effects AnalysisFamily Labor SupplyIncome SupplementationLabor Supply AnalysisPoverty Reduction Through Tax Credits
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 who work, 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.
24
A Bachu · 1999 · 2.6K citations
Do Taxpayers Bunch at Kink Points?
Emmanuel Saez · American Economic Journal Economic Policy · 2010 · 917 citations