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The Impact of the Earned Income Tax Credit and Social Policy Reforms on Work, Marriage, and Living Arrangements

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  • David T. Ellwood

Abstract

Updated March 25, 2001 A revised version of this paper appears as "The Impact of the Earned Income Tax Credit and Social Policy Reforms on Work, Marriage, and Living Arrangements" National Tax Journal 53(4) (part 2): 1063-1106. For more information see www.ntanet.org. This article examines the impact of the recent dramatic changes in the social policies, particularly the expansion of the EITC and welfare reform on labor supply, marriage, and cohabitation. Altered policies have increased incentives to work or marry for some, diminished incentives for others. The results strongly indicate expanded work by single mothers and reductions of work by married mothers in accordance with their changed incentives. By contrast, estimated impacts on marriage are small and ambiguous, though modest changes in cohabitation in the predicted direction suggest that impact on family structure might become more apparent in the future.

Suggested Citation

  • David T. Ellwood, 1999. "The Impact of the Earned Income Tax Credit and Social Policy Reforms on Work, Marriage, and Living Arrangements," JCPR Working Papers 124, Northwestern University/University of Chicago Joint Center for Poverty Research.
    • Handle: RePEc:wop:jopovw:124
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    References listed on IDEAS

    as
    1. Bruce D. Meyer & Dan T. Rosenbaum, 2001. "Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(3), pages 1063-1114.
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    11. David T. Ellwood, 2000. "Anti-Poverty Policy for Families in the Next Century: From Welfare to Work--and Worries," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 187-198, Winter.
    12. V. Joseph Hotz, 2003. "The Earned Income Tax Credit," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 141-198, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Steven J. Haider & Alison Jacknowitz & Robert F. Schoeni, 2002. "Welfare Work Requirements and Individual Well-being: Evidence from the Effects on Breastfeeding," Working Papers 02-01, RAND Corporation.
    2. Meyer, Bruce D. & Rosenbaum, Dan T., 2000. "Making Single Mothers Work: Recent Tax and Welfare Policy and Its Effects," National Tax Journal, National Tax Association;National Tax Journal, vol. 53(4), pages 1027-1062, December.
    3. James P. Ziliak, 2015. "Temporary Assistance for Needy Families," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 1, pages 303-393, National Bureau of Economic Research, Inc.
    4. Paul Gregg & Susan Harkness & Sarah Smith, 2009. "Welfare Reform and Lone Parents in the UK," Economic Journal, Royal Economic Society, vol. 119(535), pages 38-65, February.
    5. David T. Ellwood, 2000. "Anti-Poverty Policy for Families in the Next Century: From Welfare to Work--and Worries," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 187-198, Winter.
    6. Chris Haylett, 2003. "Class, Care, and Welfare Reform: Reading Meanings, Talking Feelings," Environment and Planning A, , vol. 35(5), pages 799-814, May.
    7. Johnson, Nicholas, 2000. "State Low-Income Tax Relief: Recent Trends," National Tax Journal, National Tax Association;National Tax Journal, vol. 53(3), pages 403-416, September.
    8. Susan E Mayer, 2000. "Why Welfare Caseloads Fluctuate: A Review of Research on AFDC, SSI, and the Food Stamps Program," Treasury Working Paper Series 00/07, New Zealand Treasury.
    9. James P. Ziliak, 2007. "Making Work Pay: Changes in Effective Tax Rates and Guarantees in U.S. Transfer Programs, 1983–2002," Journal of Human Resources, University of Wisconsin Press, vol. 42(3).
    10. Janet Holtzblatt & Robert Rebelein, 2000. "Measuring the Effect of the EITC on Marriage Penalties and Bonuses," JCPR Working Papers 127, Northwestern University/University of Chicago Joint Center for Poverty Research.
    11. Johnson, Nicholas, 2000. "State Low-Income Tax Relief: Recent Trends," National Tax Journal, National Tax Association, vol. 53(n. 3), pages 403-16, September.

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