IDEAS home Printed from https://ideas.repec.org/a/ntj/journl/v73y2020i1p11-46.html
   My bibliography  Save this article

The EITC and Employment Transitions: Labor Force Attachment and Annual Exit

Author

Listed:
  • Rily Wilson

Abstract

Many low-income households experience high-frequency labor market transitions. It is unclear how the earned income tax credit (EITC) work incentives affect these frequent entry and exit decisions. Exploiting the panel nature of the Current Population Survey (CPS), I show that EITC expansions induce less-educated single women with previous work experience to work more months, leading to more annual weeks worked and less annual exit, suggesting the EITC operates, in part, by keeping previously employed single women in the labor force. Employment responds to changes in the previous year’s EITC, consistent with people learning about how the returns to work have changed and then responding.

Suggested Citation

  • Rily Wilson, 2020. "The EITC and Employment Transitions: Labor Force Attachment and Annual Exit," National Tax Journal, National Tax Association;National Tax Journal, vol. 73(1), pages 11-46, March.
    • Handle: RePEc:ntj:journl:v:73:y:2020:i:1:p:11-46
    DOI: 10.17310/ntj.2020.1.01
    as

    Download full text from publisher

    File URL: https://doi.org/10.17310/ntj.2020.1.01
    Download Restriction: Access is restricted to subscribers and members of the National Tax Association.
    File URL: https://libkey.io/10.17310/ntj.2020.1.01?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Elira Kuka & Na'ama Shenhav, 2020. "Long-Run Effects of Incentivizing Work After Childbirth," NBER Working Papers 27444, National Bureau of Economic Research, Inc.
    2. Aida Farmand & Owen Davis, 2021. "Who Does the Earned Income Tax Credit Benefit? A Monopsony View," SCEPA working paper series. 2021-02, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:73:y:2020:i:1:p:11-46. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: The University of Chicago Press (email available below). General contact details of provider: https://www.ntanet.org/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.