3151 Social Science Plaza
University of California at Irvine
Irvine, CA 92697
Institutional Affiliation: UCI
NBER Working Papers and Publications
|December 2017||The Long-Run Effects of the Earned Income Tax Credit on Women’s Earnings|
with David Neumark: w24114
Using longitudinal data on marriage and children from the Panel Study of Income Dynamics from 1967 to 2016, we characterize women’s exposure to the federal and state Earned Income Tax Credit (EITC) during their first two decades of adulthood. We use measures of this exposure to estimate the long-run effects of the EITC on women’s labor market outcomes as mature adults, specifically at age 40. Our results indicate that exposure to a more generous EITC when women were unmarried and had older (school-age) children leads to higher earnings in the longer-run, and we find corresponding evidence that longer-run exposure of unmarried mothers to a more generous EITC increases cumulative labor market experience. Additionally, we find evidence that exposure to a more generous EITC when women had chil...