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The Eitc: Expectation, Knowledge, Use, And Economic And Social Mobility, Timothy M. Smeeding, Katherine Ross Phillips, Michael O'Connor
The Eitc: Expectation, Knowledge, Use, And Economic And Social Mobility, Timothy M. Smeeding, Katherine Ross Phillips, Michael O'Connor
Center for Policy Research
This paper presents initial findings on the economic impact of the Earned Income Tax Credit (EITC) based on a sample of Chicago area households that filed tax returns in the spring of 1998. Respondents reported on their detailed use of the funds to pay bills, purchase new items, or save. Asset information on the households was also gathered, along with questions regarding the ability of households to make particular expenditures without the help of the EITC. Uses of the EITC are divided into those that improve social mobility (e.g., purchase a car, pay tuition, change housing) and those that primarily …