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Full-Text Articles in Social and Behavioral Sciences

Potential Impact Of Eitc Adjustments On Financial Self-Sufficiency Among Low-Income Families: A Simulation Model, Younghee Lim, Catherine Lemieux Jun 2008

Potential Impact Of Eitc Adjustments On Financial Self-Sufficiency Among Low-Income Families: A Simulation Model, Younghee Lim, Catherine Lemieux

The Journal of Sociology & Social Welfare

Policies that help low-income mothers find and keep employment as a means of obtaining self-sufficiency have been a focal point of the welfare reform debate in the past decade. In the midst of this dialogue, the Earned Income Tax Credit (EITC) has gained popularity as one of the core work support programs for America's low- and moderately low-income families with children. This study compares the estimated effects of EITC when its value deteriorated in the late 1990s with that of a simulated EITC for which the real value kept pace with the actual cost of living on welfare caseload reductions. …


The Interaction Of Metropolitan Area Costs And The Federal Earned Income Tax Credit: One Size Fits All?, Katie Fitzpatrick, Jeffrey P. Thompson Jan 2008

The Interaction Of Metropolitan Area Costs And The Federal Earned Income Tax Credit: One Size Fits All?, Katie Fitzpatrick, Jeffrey P. Thompson

Center for Policy Research

The Federal Earned Income Tax Credoit (EITC) contributed to increasing employment rates for single women during the 1990s. This paper expands on what is known about the labor supply response to the EITC by exploiting differences in the cost-of-living faced by potentially eligible recipients in different geographic areas. Using the 1993 EITC expansion, we demonstrate that the labor supply response varies considerably with metropolitan area cost-of-living. We identify an increase in labor force participation among single mothers of as much as 10 percentage points in the lowest cost metropolitan areas. There is no discernable participation response in metropolitan areas with …