Title:

The Earned Income Tax Credit : Recipients, Labor Force Participation, and Credit Constraints, No. 11-03

PREVIOUS | NEXT

The Earned Income Tax Credit : Recipients, Labor Force Participation, and Credit Constraints, No. 11-03

DATE: March 2011

PART OF: AUTHORS: CONTRIBUTING AUTHOR:

ABSTRACT: There has been a longstanding debate in the United States about how to assist low-income families. The Earned Income Tax Credit (EITC) is designed to augment income while encouraging work: The tax credit increases with earnings for low levels of household income, but declines and ultimately is phased out as incomes rise. The EITC appears to have increased labor force participation but its effects on hours worked is ambiguous. Given the low levels of net wealth of most EITC recipients, it is likely that many are credit constrained and unable to smooth their consumption patterns.

Download (pdf) View Full Text

Share this page:


Diversity is critical to the Federal Reserve, and we are firmly committed to fostering a diverse and inclusive culture throughout the Federal Reserve System. Collections within FRASER contain historical language, content, and descriptions that reflect the time period within which they were created and the views of their creators. Certain collections contain objectionable content—for example, discriminatory or biased language used to refer to racial, ethnic, and cultural groups. These viewpoints and attitudes are inconsistent with our values, but the original descriptions are retained to ensure that they are not erased from the historical record.
Save & Share
less

Athreya, Kartik B., 1971- , Steelman, Aaron and Federal Reserve Bank of Richmond. "The Earned Income Tax Credit : Recipients, Labor Force Participation, and Credit Constraints, No. 11-03," Economic Brief (March 2011). https://fraser.stlouisfed.org/title/6034/item/583886, accessed on January 29, 2023.

More Information
less

THEMES:

Metadata (XML)
Metadata (JSON)