Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2008:14: The US earned income tax credit, its effects, and possible reforms

Bruce D. Meyer ()
Additional contact information
Bruce D. Meyer: Harris School of Public Policy Studies, University of Chicago, Postal: 1155 E. 60th Street, Chicago, IL 60637, USA

Abstract: 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.

Keywords: Welfare reform; Earned income tax credit; EITC; Earnings subsidies; Tax credits; Poverty

JEL-codes: D31; H24; I38; J38

30 pages, May 17, 2008

Full text files

wp08-14.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Ali Ghooloo ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 17:11:48.