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Economics

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University of New Mexico

2019

EITC

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Labor Market Implications On The Uptake Of The Earned Income Tax Credit In New Mexico Post Great Recession: 2008-2015, James Kaminsky Dec 2019

Labor Market Implications On The Uptake Of The Earned Income Tax Credit In New Mexico Post Great Recession: 2008-2015, James Kaminsky

Economics ETDs

The Earned Income Tax Credit (EITC) is one of the most successful poverty alleviation programs in the US tax code. In New Mexico tax filers may apply for a refundable credit – the Working Family Tax Credit (WFTC) – that is predicated upon receipt of the EITC on their federal return. However, the preponderance of research examining the efficacy of the EITC is premised upon two hypotheses: economic conditions are expanding and those seeking work can find it.

Subsequent to the Great Recession, it is not clear that these hypotheses hold. The Great Recession began in Q4-2007 and continued into …