NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Labor Supply Effects of the Earned Income Tax Credit: Evidence from Wisconsin Supplemental Benefit for Families with Three Children

Maria Cancian, Arik Levinson

NBER Working Paper No. 11454
Issued in July 2005
NBER Program(s):   LS   PE

We examine the labor market consequences of the Earned Income Tax Credit (EITC), comparing labor market behavior of eligible parents in Wisconsin, which supplements the federal EITC for families with three children, to that of similar parents in states that do not supplement the federal EITC. Data come from the 2000 Census of Population. Most previous studies have relied on changes in the EITC over time, or EITC eligibility differences for families with and without children, or have extrapolated from measured labor supply responses to other tax and benefit programs, and find significant effects of the EITC on employment. In contrast, our cross-state comparison examines a larger difference in EITC subsidy rates, uses more similar treatment and control groups, relies on a policy that has been in place for 5 years, and finds no effect of the EITC on employment or hours worked.

download in pdf format
   (362 K)

email paper

This paper is available as PDF (362 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w11454

Published: Cancian, Maria and Arik Levinson. "Labor Supply Effects of the Earned Income Tax Credit: Evidence from Wisconsin's Supplemental Benefit for Families with Three Children." National Tax Journal (December 2006). citation courtesy of

Users who downloaded this paper also downloaded these:
Hotz and Scholz w11968 Examining the Effect of the Earned Income Tax Credit on the Labor Market Participation of Families on Welfare
Eissa and Hoynes w11729 Behavioral Responses to Taxes: Lessons from the EITC and Labor Supply
Hotz The Earned Income Tax Credit
Eissa and Hoynes Behavioral Responses to Taxes: Lessons from the EITC and Labor Supply
Eissa and Liebman w5158 Labor Supply Response to the Earned Income Tax Credit
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us