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Labor Supply Response to the Earned Income Tax Credit
Abstract
This paper examines the impact of the Tax Reform Act of 1986 (TRA86), which included an expansion of the earned income tax credit, on the labor force participation and hours of work of single women with children. We identify the impact of TRA86 by comparing the change in labor supply of single women with children to the change for single women without children. We find that between 1984–1986 and 1988–1990, single women with children increased their relative labor force participation by up to 2.8 percentage points. We observe no change in the relative hours worked by single women with children who were already in the labor force.
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Citations
Cited by
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Imbens, G. W., & Wooldridge, J. M. (2009) · Journal of Economic Literature · doi:10.1257/jel.47.1.5 · Cited by 4,926
Semiparametric Difference-in-Differences Estimators
Abadie, A. (2005) · The Review of Economic Studies · doi:10.1111/0034-6527.00321 · Cited by 2,286
Identification and Inference in Nonlinear Difference-in-Differences Models
Athey, S., & Imbens, G. W. (2006) · Econometrica · doi:10.1111/j.1468-0262.2006.00668.x · Cited by 1,084
Optimal Income Transfer Programs: Intensive versus Extensive Labor Supply Responses
Saez, E. (2002) · The Quarterly Journal of Economics · doi:10.1162/003355302760193959 · Cited by 727
Income, the Earned Income Tax Credit, and Infant Health
Hoynes, H., Miller, D., & Simon, D. (2015) · American Economic Journal: Economic Policy · doi:10.1257/pol.20120179 · Cited by 551
Metadata
- Authors
- Eissa, N., & Liebman, J. B.
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 1996-05-01
- Volume
- 111
- Issue
- 2
- Pages
- 605-637
- ISSN
- 0033-5533 (ISSN-L)
- 1531-4650
- OpenAlex
- W1984485824
- Cited by
- 749
- References
- 0
- FWCI
- 16.04
- Type
- journal article
- Language
- en
- Open access
- closed
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- Eissa, N., & Liebman, J. B. (1996). Labor Supply Response to the Earned Income Tax Credit. The Quarterly Journal of Economics. https://doi.org/10.2307/2946689
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