Long-Run Effects of the Earned Income Tax Credit

David Neumark, Peter Shirley

Research output: Working paper

Abstract

The Earned Income Tax Credit (EITC) substantially subsidizes earnings for low- to moderate-income families with children in the United States. Research has established that the EITC has positive short-term effects on the employment of less-educated single mothers and reduces overall poverty. The EITC may also generate higher earnings in the long run, as the short-run positive employment effects for low-skilled women accumulate into greater labor market experience that makes them more productive.
Original languageEnglish
Place of PublicationSan Francisco
PublisherFederal Reserve Bank of San Francisco
Number of pages5
Publication statusPublished - 6 Jan 2020

Publication series

NameFRBSF Economic Letter
PublisherFederal Reserve Bank of San Francisco
No.2020-01

Keywords

  • EITC
  • Earned Income Tax Credit
  • employment
  • United States
  • earnings

Cite this

Neumark, D., & Shirley, P. (2020). Long-Run Effects of the Earned Income Tax Credit. (FRBSF Economic Letter; No. 2020-01). Federal Reserve Bank of San Francisco. https://www.frbsf.org/economic-research/files/el2020-01.pdf