Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36899
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dc.contributor.authorLeigh, Andrewen_US
dc.date.accessioned2010-05-28en_US
dc.date.accessioned2010-07-23T09:34:59Z-
dc.date.available2010-07-23T09:34:59Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/36899-
dc.description.abstractHow are hourly wages affected by the Earned Income Tax Credit? Using variation in state EITC supplements, I find that a 10 percent increase in the generosity of the EITC is associated with a 5 percent fall in the wages of high school dropouts and a 2 percent fall in the wages of those with only a high school diploma, while having no effect on the wages of college graduates. Given the large increase in labor supply induced by the EITC, this is consistent with most reasonable estimates of the elasticity of labor demand. Although workers with children receive a much larger EITC than childless workers, and the effect of the credit on labor force participation is larger for those with children, the hourly wages of both groups are similarly affected by an EITC increase. As a check on this strategy, I also use federal variation in the EITC across gender-age-education groups, and find that those demographic groups that received the largest EITC increases also experienced a drop in their hourly wages, relative to other groups.en_US
dc.language.isoengen_US
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen_US
dc.relation.ispartofseries|aDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit |x4960en_US
dc.subject.jelH22en_US
dc.subject.jelH23en_US
dc.subject.jelJ22en_US
dc.subject.jelJ30en_US
dc.subject.ddc330en_US
dc.subject.keywordTaxation incidenceen_US
dc.subject.keywordlabor supplyen_US
dc.subject.keywordsimulated instrumenten_US
dc.subject.stwNegative Einkommensteueren_US
dc.subject.stwSteuerinzidenzen_US
dc.subject.stwLohnen_US
dc.subject.stwSteuerwirkungen_US
dc.subject.stwArbeitsangeboten_US
dc.subject.stwAustralienen_US
dc.titleWho benefits from the earned income tax credit? Incidence among recipients, coworkers and firmsen_US
dc.type|aWorking Paperen_US
dc.identifier.ppn626947820en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-

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