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Earned income credit utilization by welfare recipients: A case study of Minnesota's earned income credit program

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  • Donald P. Hirasuna

    (Minnesota House of Representatives)

  • Thomas F. Stinson

    (University of Minnesota)

Abstract

This paper examines utilization of a state earned income credit by AFDC and TANF recipients. Although utilization percentages are increasing, we find that among TANF recipients in 1999, 45.7 percent of all households and 34.8 percent of eligible households did not receive the state earned income credit. Moreover, we find that utilization may depend upon TANF requirements and incentives, information resources, and barriers to work and filing of income tax returns. Finally, we investigate whether low utilization is because of little or no benefit from the state earned income credit and find this may be true for some with barriers or less incentive to work under TANF. © 2006 by the Association for Public Policy Analysis and Management.

Suggested Citation

  • Donald P. Hirasuna & Thomas F. Stinson, 2007. "Earned income credit utilization by welfare recipients: A case study of Minnesota's earned income credit program," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 26(1), pages 125-148.
    • Handle: RePEc:wly:jpamgt:v:26:y:2007:i:1:p:125-148
    DOI: 10.1002/pam.20230
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    References listed on IDEAS

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    5. Scholz, John Karl, 1994. "The Earned Income Credit: Participation, Compliance, and Antipoverty Effectiveness," National Tax Journal, National Tax Association;National Tax Journal, vol. 47(1), pages 63-87, March.
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