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Should the earned income tax credit rise for childless adults?

Author

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  • Harry J. Holzer

    (McCourt School of Public Policy, Georgetown University, USA, and IZA, Germany)

Abstract

The earned income tax credit provides important benefits to low-income families with children in the US. At an annual cost of about $60 billion, it increases the incomes of such families while encouraging parents to work more by subsidizing their incomes. But low-income adults without children and non-custodial parents receive only very low payments under the program, providing them with little income benefits or work incentives. Many of these adults are low-income young men whose wages and employment rates have been declining for years and who might benefit substantially from expanded eligibility for the earned income tax credit.

Suggested Citation

  • Harry J. Holzer, 2015. "Should the earned income tax credit rise for childless adults?," IZA World of Labor, Institute of Labor Economics (IZA), pages 184-184, September.
  • Handle: RePEc:iza:izawol:journl:y:2015:n:184
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    References listed on IDEAS

    as
    1. Jesse Rothstein, 2010. "Is the EITC as Good as an NIT? Conditional Cash Transfers and Tax Incidence," American Economic Journal: Economic Policy, American Economic Association, vol. 2(1), pages 177-208, February.
    2. Austin Nichols & Jesse Rothstein, 2015. "The Earned Income Tax Credit," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 1, pages 137-218, National Bureau of Economic Research, Inc.
    3. Austin Nichols & Jesse Rothstein, 2015. "The Earned Income Tax Credit (EITC)," NBER Working Papers 21211, National Bureau of Economic Research, Inc.
    4. Eissa, Nada & Hoynes, Hilary Williamson, 2004. "Taxes and the labor market participation of married couples: the earned income tax credit," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1931-1958, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    employment; less-educated men; childless; low-income adults; non-custodial parents;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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