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Labor force participation responses to the 1993 EITC expansion

Author

Listed:
  • Jeff DeSimone

    (East Carolina University)

  • Jeff Rinehart

    (Capital One Bank)

Abstract

This paper examines the effect of the 1993 Earned Income Tax Credit expansion on the labor force participation of single women by comparing the changes from before to after the expansion in the participation of women with no, one, and two or more children. Both quasi-experimental and regression-based difference-in-difference estimates from annual 1991-1998 March CPS data indicate that this expansion significantly narrowed the labor force participation gaps between these three groups.

Suggested Citation

  • Jeff DeSimone & Jeff Rinehart, 2001. "Labor force participation responses to the 1993 EITC expansion," Economics Bulletin, AccessEcon, vol. 8(6), pages 1-9.
    • Handle: RePEc:ebl:ecbull:eb-01h30001
    as

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    File URL: http://www.accessecon.com/pubs/EB/2001/Volume8/EB-01H30001A.pdf
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    References listed on IDEAS

    as
    1. Bruce D. Meyer & Dan T. Rosenbaum, 2001. "Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(3), pages 1063-1114.
    2. N. Eissa & H. W. Hoynes, "undated". "The Earned Income Tax Credit and the Labor Supply of Married Couples," Institute for Research on Poverty Discussion Papers 1194-99, University of Wisconsin Institute for Research on Poverty.
    3. Nada Eissa & Jeffrey B. Liebman, 1996. "Labor Supply Response to the Earned Income Tax Credit," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 605-637.
    4. Meyer, Bruce D. & Rosenbaum, Dan T., 2000. "Making Single Mothers Work: Recent Tax and Welfare Policy and Its Effects," National Tax Journal, National Tax Association;National Tax Journal, vol. 53(4), pages 1027-1062, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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