EITC Eligibility, Participation, and Compliance Rates for AFDC Households: Evidence from the California Caseload
In this report, we examine the eligibility for and participation in the earned income tax credit (EITC) for low-income families in California during the 1990s. The EITC is a federal in-come tax credit available to working poor families, with the amount of credit determined by the number of eligible children and by family income. The EITC has become the largest cash or near-cash program available to low-income families in the U.S., making it one of the corner-stones of the nation’s antipoverty effort. The effectiveness of the EITC depends, in part, on whether those who are eligible for the credit actually receive it and whether it is actually claimed. We examine EITC eligibility, participation and non-compliance rates for a special group of potential EITC beneficiaries, namely low-income households in California who received AFDC during the 1990s. Our sample consists of AFDC assistance units from four counties—Alameda, Los Angeles, San Bernardino and San Joaquin—that were part of the California Work Pays Demonstration Project (CWPDP), a waiver demonstration to assess the impacts of a series of reforms to the AFDC program in the state. For this sample we have data from administrative records from county welfare offices on AFDC participation, AFDC payments and the income re-ported to county welfare departments for the purpose of determining AFDC payments. These data were supplemented with quarterly wage and salary information from the state’s unemploy-ment insurance records as well as taxable income, by source, and EITC credits from federal in-come tax returns for the years 1993 and 1994. The latter information was obtained by matching state unemployment insurance wage earnings records and IRS tax returns data for the adults in the assistance units included in the demonstration project.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||01 Jul 1999|
|Contact details of provider:|| Postal: Harris Graduate School of Public Policy Studies, 1155 E. 60th Street Chicago, IL 60637|
Web page: http://www.jcpr.org/wp/ByDate.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeffrey B. Liebman, 2000. "Who are the Ineligible EITC Recipients?," JCPR Working Papers 131, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Rebecca M. Blank & Patricia Ruggles, 1993. "When Do Women Use AFDC & Food Stamps? The Dynamics of Eligibility vs. Participation," NBER Working Papers 4429, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:wop:jopovw:102. 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: (Thomas Krichel)
If references are entirely missing, you can add them using this form.