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Title:Stepping stone or dead end? The effect of the EITC on earnings growth PDF Logo
Authors:Dahl, Molly
DeLeire, Thomas
Schwabish, Jonathan
Issue Date:2009
Series/Report no.:IZA discussion papers 4146
Abstract:While many studies have found that the EITC increases the employment rates of single mothers, no study to date has examined whether the jobs taken by single mothers as a result of the EITC incentives are dead-end jobs or jobs that have the potential for earnings growth. Using a panel of administrative earnings data linked to nationally representative survey data, we find no evidence that the EITC expansions between 1994 and 1996 induced single mothers to take dead-end jobs. If anything, the increase in earnings growth during the mid-to-late 1990s for single mothers who were particularly affected by the EITC expansion was higher than it was for other similar women. The EITC encourages work among single mothers, and that work continues to pay off through future increases in earnings.
Subjects:Earned income tax credit
earnings
single mothers
JEL:J3
H2
Persistent Identifier of the first edition:urn:nbn:de:101:1-20090513444
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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