Skip navigation
Skip navigation

Who benefits from the earned income tax credit? Incidence among recipients, coworkers and firms

Leigh, Andrew; Leigh, Andrew


How are hourly wages affected by the Earned Income Tax Credit? Two strategies are utilized to determine the relationship between the credit and hourly wages. First, I use variation in state EITC supplements, which magnify the effect of the federal EITC. I find that a 10 percent increase in the generosity of the EITC is associated with a 4 percent fall in the wages of high school dropouts and a 2 percent fall in the wages of those with only a high school diploma, while having no effect on the...[Show more]

CollectionsANU Research Publications
Type: Working/Technical Paper
Source: Discussion paper No. 494


File Description SizeFormat Image
DP494.pdf582.57 kBAdobe PDFThumbnail

Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.

Updated:  22 January 2019/ Responsible Officer:  University Librarian/ Page Contact:  Library Systems & Web Coordinator