Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/227345
Authors: 
Schanzenbach, Diane Whitmore
Strain, Michael R.
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13818
Abstract: 
The Earned Income Tax Credit (EITC) is the cornerstone U.S. anti-poverty program, typically lifting over 5 million 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.
Subjects: 
earned income tax credit
EITC
labor supply
JEL: 
J22
J28
H31
I38
Document Type: 
Working Paper

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