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Labor supply responses to tax credit disbursements: Evidence from the EITC schedule

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  • Andrew J. Bibler

Abstract

The Earned Income Tax Credit (EITC) schedule and lump‐sum disbursement can create significant labor supply responses. I estimate labor supply responses to tax credit disbursements using a regression kink design. Among single workers, credits increase labor supply around the time that tax credits are disbursed at the first and second kinks in the EITC schedule but reduce labor supply on the intensive margin at the third kink. There is some evidence of heterogeneous responses among married women, including an increase in labor supply near the third kink, although findings in the sample of married women appear less robust.

Suggested Citation

  • Andrew J. Bibler, 2026. "Labor supply responses to tax credit disbursements: Evidence from the EITC schedule," Economic Inquiry, Western Economic Association International, vol. 64(2), pages 555-573, April.
  • Handle: RePEc:bla:ecinqu:v:64:y:2026:i:2:p:555-573
    DOI: 10.1111/ecin.70040
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