"The Long-Term Impact of the Earned Income Tax Credit on Children’s Education and Employment Outcomes"    with Kathy Michelmore

  • Journal of Labor Economics (October 2018, vol. 36, no. 4, pp. 1127-1163)

  • Abstract: Using 4 decades of variation in the federal and state Earned Income Tax Credit (EITC), we estimate the impact of exposure to EITC expansions in childhood on education and employment outcomes in adulthood. Reduced-form results suggest that an additional $1,000 in EITC exposure when a child is 13–18 years old increases the likelihood of completing high school (1.3%), completing college (4.2%), and being employed as a young adult (1.0%) and earnings by 2.2%. Our analysis reveals that the primary channel through which the EITC improves these outcomes is increases in pretax family earnings.

  • Ungated version here

  • Media: Medium / Biden Forum, Brad DeLong


“The Rise of Working Mothers and the 1975 Earned Income Tax Credit”

"Unintended Consequences? More Marriage, More Children, and the EITC"

  • Presentations: 2018: Society of Labor Economists, Research and Evaluation Conference on Self-Sufficiency; 2017: International Institute of Public Finance, National Tax Association

  • Abstract: The EITC provides a ``marriage bonus'' to some couples but a ``marriage penalty'' to others: the average incentive is theoretically ambiguous, has changed over time, and existing empirical evidence has been mixed. The EITC also encourages some households to have more children but others to have less. Using over 30 years of household panel data, I find that federal and state EITC expansions increase marriage and fertility, and decrease non-marital cohabitation. These results imply that some estimates in the EITC literature may be biased, since endogenous switching from unmarried to married or increasing fertility would violate the stable-group-composition condition required by difference in differences.


“Does the EITC Pay for Itself?” with Maggie R. Jones

  • Presentations: 2018: University of Michigan, University of Chicago Harris School of Public Policy (scheduled), University of Wisconsin (scheduled), University of Southern California (scheduled), University of Texas at Austin (scheduled), National Tax Association (scheduled), Association for Public Policy Analysis & Management (scheduled), Annual Conference of the Federal Statistical Research Data Centers, Columbia University, International Institute of Public Finance

“Public Policy and Time Spent Between Mothers and Children” with Lance Lochner
“Time Use Among Full-Time Workers and the Gender Wage Gap” with Yana Gallen
“Does the EITC Help or Harm Rural America? Evidence from Migration” with Dan Black
“The Role of the Earned Income Tax Credit in the Narrowing of the Gender Wage Gap”
“How Much of the Gender and Racial Wage Gap Can Be Explained by Discriminatory Attitudes?”
“The 1964 Civil Rights Act and Black-White Outcomes: 50 Years Later”

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