Effects of the Earned Income Tax Credit for Childless Adults: A Regression Discontinuity Approach
Most antipoverty policy in the United States focuses on families with children, but efforts to assist childless adults have gained traction in recent years. We examine the impact of the Earned Income Tax Credit on the labor force outcomes of childless adults using the age-25 eligibility discontinuity. We find no impacts on labor force participation and employment outcomes, which may be due to lack of information about the credit, lack of behavioral response due to its small size, or that childless adults already have very high labor force participation rates.
We are grateful for comments from Bill Gale, Jeffrey Clemens, Wojtek Kopczuk, Robert Moffitt, David Neumark, Michael Strain, Riley Wilson, and attendees at the 2022 Tax Policy and the Economy work-shop. Margaret Jones and Julian Bernando provided insight on EITC take-up rates. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Jonathan Meer & Joshua Witter, 2023. "Effects of the Earned Income Tax Credit for Childless Adults: A Regression Discontinuity Approach," Tax Policy and the Economy, vol 37, pages 175-198.