Neumark, David; Wascher, William - In: National Tax Journal 54 (2001) n. 2, pp. 281-318
This paper evaluates the effects of the earned income tax credit (EITC) on poor families’ earnings. Exploiting state-level variation in EITCs, we find that the EITC helps families rise above poverty-level earnings, primarily by inducing labor market entry in families that initially do not have...