The EITC Disincentive: The Effects on Hours Worked from the Phase-out of the Earned Income Tax Credit
This paper examines the effect on hours worked of the income-based phase-out of the Earned Income Tax Credit (EITC). It discusses earlier literature on the subject. While the effects on labor force participation of EITC have been thoroughly studied, producing a consensus that the program encourages participation particularly among single women with children, the effect on hours has taken a back seat in most studies. Those who have studied the issue have generally found no effect. A number of those studies, however, were based on a population defined too broadly to indicate anything meaningful for the EITC population, while others seemed to overlook facets of their own data. I include a multiple regression using Current Population Survey Data cases in which family income corresponds to the phase-out range of EITC. Only in the phase-out range â€“ as beneficiaries lose part of their benefits as a percentage of income above the threshold amount â€“ would we expect a negative effect on hours worked. My results show a small negative effect on hours worked for the population in the phase-out range.
Volume (Year): 4 (2007)
Issue (Month): 3 (September)
|Contact details of provider:|| Postal: Enterprise Hall, Room 354, 4400 University Drive, 3G4 Fairfax, VA 22030|
Phone: (703) 993-1151
Web page: https://econjwatch.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ejw:journl:v:4:y:2007:i:3:p:308-320. 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: (Jason Briggeman)
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.