TY  - JOUR
AU  - Cancian,Maria
AU  - Levinson,Arik
TI  - Labor Supply Effects of the Earned Income Tax Credit: Evidence from Wisconsin Supplemental Benefit for Families with Three Children
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11454
PY  - 2005
Y2  - July 2005
UR  - http://www.nber.org/papers/w11454
L1  - http://www.nber.org/papers/w11454.pdf
N1  - Author contact info:
Maria Cancian

Arik Levinson
Department of Economics ICC 571
Georgetown University
3700 O St., NW
Washington, DC 20057
Tel: 202/687-5571
Fax: 202/687-6102
E-Mail: aml6@georgetown.edu
AB  - 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.
ER  -