Advanced Search
MyIDEAS: Login to save this article or follow this journal

Redistribution And Tax Expenditures: The Earned Income Tax Credit

Contents:

Author Info

  • Eissa, Nada
  • Hoynes, Hilary

Abstract

This paper examines the distributional and behavioral effects of the Earned Income Tax Credit (EITC). We chart the growth of the program over time, and argue that several expansions show that real responses to taxes are important. We use tax data to show the distribution of benefits by income and family size, and examine the impacts of hypothetical reforms to the credit. Finally, we calculate the efficiency effects of marginal changes to EITC parameters.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ntanet.org/NTJ/64/2/ntj-v64n02p689-729-redistribution-tax-expenditures-earned.pdf
Download Restriction: no

File URL: http://www.ntanet.org/NTJ/64/2/ntj-v64n02p689-729-redistribution-tax-expenditures-earned.html
Download Restriction: no

Bibliographic Info

Article provided by National Tax Association in its journal National Tax Journal.

Volume (Year): 64 (2011)
Issue (Month): 2 (June)
Pages: 689-729

as in new window
Handle: RePEc:ntj:journl:v:64:y:2011:i:2:p:689-729

Contact details of provider:
Postal: 725 15th St. NW #600. Washington, D.C. 20005-2109
Phone: (202)737-3325
Fax: (202) 737-7308
Email:
Web page: http://www.ntanet.org/
More information through EDIRC

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Feenberg, Daniel R. & Rosen, Harvey S., 1995. "Recent Developments in the Marriage Tax," National Tax Journal, National Tax Association, National Tax Association, vol. 48(1), pages 91-101, March.
  2. 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, MIT Press, MIT Press, vol. 116(3), pages 1063-1114, August.
  3. Stacy Dickert & Scott Houser & John Karl Scholz, 1995. "The Earned Income Tax Credit and Transfer Programs: A Study of Labor Market and Program Participation," NBER Chapters, National Bureau of Economic Research, Inc, in: Tax Policy and the Economy, Volume 9, pages 1-50 National Bureau of Economic Research, Inc.
  4. Kleven, Henrik & Kreiner, Claus Thustrup, 2006. "The Marginal Cost of Public Funds: Hours of Work versus Labor Force Participation," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5594, C.E.P.R. Discussion Papers.
  5. Juhn, Chinhui, 1992. "Decline of Male Labor Market Participation: The Role of Declining Market Opportunities," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 107(1), pages 79-121, February.
  6. Eissa, Nada & Hoynes, Hilary Williamson, 2004. "Taxes and the labor market participation of married couples: the earned income tax credit," Journal of Public Economics, Elsevier, Elsevier, vol. 88(9-10), pages 1931-1958, August.
  7. Jeffrey B. Liebman, 1998. "The Impact of the Earned Income Tax Credit on Incentives and Income Distribution," NBER Chapters, National Bureau of Economic Research, Inc, in: Tax Policy and the Economy, Volume 12, pages 83-120 National Bureau of Economic Research, Inc.
  8. Ellwood, David T., 2000. "The Impact of the Earned Income Tax Credit and Social Policy Reforms on Work, Marriage, and Living Arrangements," National Tax Journal, National Tax Association, National Tax Association, vol. 53(n. 4), pages 1063-1106, December.
  9. Nada Eissa & Jeffrey B. Liebman, 1995. "Labor Supply Response to the Earned Income Tax Credit," NBER Working Papers 5158, National Bureau of Economic Research, Inc.
  10. Emmanuel Saez, 1999. "Do Taxpayers Bunch at Kink Points?," NBER Working Papers 7366, National Bureau of Economic Research, Inc.
  11. 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 Association, vol. 53(n. 4), pages 1027-62, December.
  12. V. Joseph Hotz, 2003. "The Earned Income Tax Credit," NBER Chapters, National Bureau of Economic Research, Inc, in: Means-Tested Transfer Programs in the United States, pages 141-198 National Bureau of Economic Research, Inc.
  13. Nada Eissa & Henrik Jacobsen Kleven & Claus Thustrup Kreiner, 2004. "Evaluation of Four Tax Reforms in the United States: Labor Supply and Welfare Effects for Single Mothers," NBER Working Papers 10935, National Bureau of Economic Research, Inc.
  14. Bruce D. Meyer & Dan T. Rosenbaum, 1999. "Making Single Mothers Work: Recent Tax and Welfare Policy and its Effects," JCPR Working Papers, Northwestern University/University of Chicago Joint Center for Poverty Research 152, Northwestern University/University of Chicago Joint Center for Poverty Research.
  15. Emmanuel Saez, 2000. "Optimal Income Transfer Programs: Intensive Versus Extensive Labor Supply Responses," NBER Working Papers 7708, National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Figari, Francesco, 2009. "Can in-work benefits improve social inclusion in the southern European countries?," EUROMOD Working Papers EM4/09, EUROMOD at the Institute for Social and Economic Research.
  2. Aaberge, Rolf & Flood, Lennart, 2013. "U.S. versus Sweden: The Effect of Alternative In-Work Tax Credit Policies on Labour Supply of Single Mothers," Working Papers in Economics, University of Gothenburg, Department of Economics 576, University of Gothenburg, Department of Economics.
  3. Claudio A Agostini & Marcela Perticara & Javiera Selman, 2012. "Una Propuesta de Crédito Tributario al Ingreso para Chile," Working Papers, Adolfo Ibáñez University, School of Government wp_021, Adolfo Ibáñez University, School of Government.
  4. Bargain, Olivier & Dolls, Mathias & Immervoll, Herwig & Neumann, Dirk & Peichl, Andreas & Pestel, Nico & Siegloch, Sebastian, 2011. "Tax Policy and Income Inequality in the U.S., 1978-2009: A Decomposition Approach," IZA Discussion Papers 5910, Institute for the Study of Labor (IZA).
  5. Gunter, Samara, 2013. "State Earned Income Tax Credits And Participation In Regular And Informal Work," National Tax Journal, National Tax Association, National Tax Association, vol. 66(1), pages 33-62, March.
  6. Nathaniel Hendren, 2013. "The Policy Elasticity," NBER Working Papers 19177, National Bureau of Economic Research, Inc.
  7. De Luca, Giuseppe & Rossetti, Claudio & Vuri, Daniela, 2012. "In-Work Benefits for Married Couples: An Ex-Ante Evaluation of EITC and WTC Policies in Italy," IZA Discussion Papers 6739, Institute for the Study of Labor (IZA).
  8. Athreya, Kartik & Reilly, Devin & Simpson, Nicole B., 2014. "Single Mothers and the Earned Income Tax Credit: Insurance Without Disincentives?," IZA Discussion Papers 8114, Institute for the Study of Labor (IZA).
  9. John Schmitt, 2012. "Low-wage Lessons," CEPR Reports and Issue Briefs, Center for Economic and Policy Research (CEPR) 2012-03, Center for Economic and Policy Research (CEPR).
  10. Bargain, Olivier & Dolls, Mathias & Immervoll, Herwig & Neumann, Dirk & Peichl, Andreas & Pestel, Nico & Siegloch, Sebastian, 2013. "Partisan Tax Policy and Income Inequality in the U.S., 1979-2007," IZA Discussion Papers 7190, Institute for the Study of Labor (IZA).
  11. Jesse Rothstein, 2009. "Is the EITC Equivalent to an NIT? Conditional Cash Transfers and Tax Incidence," NBER Working Papers 14966, National Bureau of Economic Research, Inc.
  12. Olivier Bargain & Mathias Dolls & Dirk Neumann & Andreas Peichl & Sebastian Siegloch, 2013. "Comparing Inequality Aversion across Countries When Labor Supply Responses Differ," Working Papers, HAL halshs-00805751, HAL.
  13. Artheya, Kartik & Reilly, Devin & Simpson, Nicole B., 2014. "Young Unskilled Women and the Earned Income Tax Credit: Insurance Without Disincentives?," Working Paper, Federal Reserve Bank of Richmond 14-11, Federal Reserve Bank of Richmond, revised 01 Jun 2014.
  14. Simpson, Nicole B., 2013. "Families, Taxes and the Welfare System," IZA Discussion Papers 7369, Institute for the Study of Labor (IZA).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:64:y:2011:i:2:p:689-729. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charmaine Wright).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.