Domestic Public Policy

Evaluating the Earned Income Tax Credit: Long-Term Effects, Unintended Spillovers, and a Path Forward for Policymakers Today

Grant Year: 2018

Jacob Bastian will assess the extent to which the Earned Income Tax Credit (EITC) can increase employment and earnings in ways that support economic opportunity and upward mobility. He will make use of a newly merged dataset that includes census data and information on earnings from tax records to examine whether the costs of the EITC are balanced out by longer-term gains in tax payments from increased employment and whether recipients reduce their employment if they are no longer eligible for the EITC. The project’s findings will appear in a series of papers.

University of Chicago Domestic Public Policy