The US earned income tax credit, its effects, and possible reforms
In this paper, I first summarize how the US Earned Income Tax Credit (EITC) operates and describe the characteristics of recipients. I then discuss empirical work on the effects of the EITC on poverty and income distribution, and its effects on labor supply. Next, I discuss a few policy concerns about the EITC: possible negative effects on hours of work and marriage, and problems of compliance with the tax system. I then briefly discuss some possible reforms to the structure of the current EITC.
|Date of creation:||17 May 2008|
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- Boone, Jan & Bovenberg, Lans, 2006.
"Optimal welfare and in-work benefits with search unemployment and observable abilities,"
Journal of Economic Theory,
Elsevier, vol. 126(1), pages 165-193, January.
- Boone, J. & Bovenberg, A.L., 2006. "Optimal welfare and in-work benefits with search unemployment and observable abilities," Other publications TiSEM 699c7d24-2a40-4eed-b03e-8, Tilburg University, School of Economics and Management.
- Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, July. Full references (including those not matched with items on IDEAS)
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