| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w6856 |
| 来源ID | Working Paper 6856 |
| The Earned Income Tax Credit and the Labor Supply of Married Couples | |
| Nada Eissa; Hilary Williamson Hoynes | |
| 发表日期 | 1998-12-01 |
| 出版年 | 1998 |
| 语种 | 英语 |
| 摘要 | Over 18 million taxpayers are projected to receive the Earned Income Tax Credit (EITC) in tax year 1997, at a total cost to the federal government of about 25 billion dollars. The EITC is refundable, so that any amount of the credit exceeding the family's tax liability is returned in the form of a cash refund. Advocates of the credit argue that this redistribution occurs with much less distortion to labor supply than that caused by other elements of the welfare system. This popular view that the credit is unlikely to hold among married couples. Theory suggests that primary earners (typically men) would increase labor force participation, but secondary earners would reduce their labor supply in response to an EITC. We study the labor supply response of married couples to several EITC expansions between 1984 and 1996. While our primary interest is the response to changes in the budget set induced by the EITC, our estimation strategy takes account of budget set changes caused by federal tax policy, and by cross-sectional variation in wages, income, and family size. We use both quasi-experimental and reduced form labor supply models to estimate the impact of EITC induced tax changes. The results suggest that EITC expansions between 1984 and 1996 increased married men's labor force participation only slightly but reduced married women's labor force participation by over a full percentage point. Overall, the evidence suggests that family labor supply and pre-tax family earnings fell among married couples. Our results imply that the EITC is effectively subsidizing married mothers to stay at home, and therefore have implications for the design of the program. |
| 主题 | Public Economics ; Taxation |
| URL | https://www.nber.org/papers/w6856 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/564366 |
| 推荐引用方式 GB/T 7714 | Nada Eissa,Hilary Williamson Hoynes. The Earned Income Tax Credit and the Labor Supply of Married Couples. 1998. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w6856.pdf（1655KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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