The EITC and the Extensive Margin: A Reappraisal / Henrik Kleven.

Format:

Book

Author/Creator:

Kleven, Henrik.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w26405.

NBER working paper series no. w26405

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

EITC and the Extensive Margin

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2019.

Summary:

This paper reappraises the impact of the Earned Income Tax Credit (EITC) on labor supply at the extensive margin for single mothers. I investigate every EITC reform at the state and federal level since the inception of the policy. Apart from the federal 1993 reform, EITC expansions have not had any clear and significant effects on employment. The 1993 reform is associated with large employment effects, but these effects align more closely with confounding changes from welfare reform and the macroeconomy than with the EITC. I conduct a comprehensive analysis of the robustness of the EITC null result to model uncertainty.

Notes:

Print version record

October 2019.