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The EITC Disincentive: A Reply to Paul Trampe

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  • Hilary Hoynes

Abstract

In this reply to Paul Trampe’s comment, “The EITC Disincentive: The Effects on Hours Worked from the Phase-Out of the Earned Income Tax Credit,†Econ Journal Watch 4(3): 308-320, I discuss several omissions, errors in interpretation, and problems with his empirical analysis.

Suggested Citation

  • Hilary Hoynes, 2007. "The EITC Disincentive: A Reply to Paul Trampe," Econ Journal Watch, Econ Journal Watch, vol. 4(3), pages 321-325, September.
    • Handle: RePEc:ejw:journl:v:4:y:2007:i:3:p:321-325
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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. Keane, Michael & Moffitt, Robert, 1998. "A Structural Model of Multiple Welfare Program Participation and Labor Supply," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(3), pages 553-589, August.
    3. Cancian, Maria & Levinson, Arik, 2006. "Labor Supply Effects of the Earned Income Tax Credit: Evidence From Wisconsin's Supplemental Benefit for Families With Three Children," National Tax Journal, National Tax Association;National Tax Journal, vol. 59(4), pages 781-800, December.
    4. Nada Eissa & Hilary W. Hoynes, 2006. "Behavioral Responses to Taxes: Lessons from the EITC and Labor Supply," NBER Chapters, in: Tax Policy and the Economy, Volume 20, pages 73-110, National Bureau of Economic Research, Inc.
    5. Nada Eissa & Hilary W. Hoynes, 2006. "Behavioral Responses to Taxes: Lessons from the EITC and Labor Supply," NBER Chapters,in: Tax Policy and the Economy, Volume 20, pages 73-110 National Bureau of Economic Research, Inc.
    6. 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.
    7. M. Keane & R. Mofitt, 1995. "A Structural Model of Multiple Welfare Program Participation and Labor Supply," Working Papers 95-4, Brown University, Department of Economics.
    8. 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, vol. 88(9-10), pages 1931-1958, August.
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    Cited by:

    1. Paul Trampe, 2008. "The EITC Disincentive: A Reply to Dr. Hilary Hoynes," Econ Journal Watch, Econ Journal Watch, vol. 5(1), pages 59-65, January.

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    More about this item

    Keywords

    Earned Income; Marginal Tax Rate; Phase-out; Phase-in; Plateau region; Disincentive; Workforce Participation; Assistance;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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