Earned income tax credit and crime
Open accessAbstract
This study examines the relationship between earned income tax credit (EITC) laws and crime. Using data from 1999–2017, a period with 73 state EITC changes, I evaluate the effects of state‐level EITCs on violent and property crime. Estimating difference‐in‐differences models, I find that higher EITCs are associated with significant reductions in violent crime, while not affecting property crimes. Introducing high state EITC is associated with a 10.0% reduction in violent crimes, which corresponds to 40 fewer crimes per 100,000 individuals. Event study estimates confirm the negative association between EITC generosity and violent crime.
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Several non-peer reviewed economic working papers and one paper published after the search evaluated the role of federal economic policies and were not included in the review.
“Additionally, several non-peer reviewed economic working papers82,83 and one paper published after our search84 evaluated the role of federal economic policies were not included in our review.”
From Community investment interventions as a means for decarceration: A scoping review (2022) · cites this paper as [82]
The Introduction identifies this as a study of EITC policy and crime, but specifies that it examines higher state EITCs. The Discussion and Conclusions likewise says it uses state-level variation in EITC rates, so describing this paper as evaluating federal economic policy is imprecise. (LLM, conf=0.88)
Experimental — accuracy not yet measuredThese papers support the implementation of the Earned Income Tax Credit and the expansion of Medicaid under the Affordable Care Act as crime-reducing measures.
“These papers support the implementation of the Earned Income Tax Credit and the expansion of Medicaid under the Affordable Care Act as crime-reducing measures.82,84”
From Community investment interventions as a means for decarceration: A scoping review (2022) · cites this paper as [82]
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Merton, R. K. (2017) · Gangs · doi:10.4324/9781351157803-1 · Cited by 3,689 · see citing works
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Cited by
Sorted by citations
Community investment interventions as a means for decarceration: A scoping review
Hawks, L., Lopoo, E., Puglisi, L., Cellini, J., Thompson, K., Halberstam, A., Tolliver, D., Martinez-Hamilton, S., & Wang, E. (2022) · The Lancet Regional Health - Americas · doi:10.1016/j.lana.2021.100150 · Cited by 15 · see citing works
- Authors
- Lenhart, O.
- Affiliations
- University of Strathclyde (GB)
- Corresponding author
- Lenhart, Otto
- ORCID
- Lenhart, Otto
- Venue
- Contemporary Economic Policy
- Publisher
- Wiley
- Published
- 2021-02-03
- Volume
- 39
- Issue
- 3
- Pages
- 589-607
- ISSN
- 1074-3529 (ISSN-L)
- 1465-7287
- OpenAlex
- W3112658970
- Cited by
- 14
- References
- 1
- Citations by year
- 2026: 1 · 2025: 4 · 2024: 3 · 2023: 2 · 2022: 3 · 2021: 1
- FWCI
- 3.12
- Type
- journal article
- Language
- en
- Open access
- Locations
- Contemporary Economic Policy (publishedVersion)
- Strathprints: The University of Strathclyde institutional repository (University of Strathclyde) (submittedVersion)
- Topics
- Social Sciences › Sociology and Political Science › Crime Patterns and Interventions
- Social Sciences › Gender Studies › Gender, Labor, and Family Dynamics
- Social Sciences › Sociology and Political Science › Criminal Justice and Corrections Analysis
- Keywords
- Earned Income Tax Credit, crime, violent crime, property crime, state tax policy, low-income households, tax policy effects
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