Poverty & Social Policy Seminar: “EITC Expansions, Earnings Growth, and Inequality: Evidence from Washington, DC”
February 28 12:00 pm - 1:00 pm
- Center on Poverty & Social Policy
About the SeminarThe United States federal earned income tax credit (EITC) is a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. Research suggests that by boosting the employment of single mothers, the EITC reduces the number of female-headed households receiving cash welfare assistance. It also leads to benefits for children in such households at virtually every stage of life. At this seminar sponsored by the Center on Poverty & Social Policy, Dr. Bradley Hardy (bio), an economist based at American University’s School of Public Affairs, will discuss his study using longitudinal administrative tax data from Washington, DC, to examine how EITC expansions between 2001 and 2009 affected income and inequality in the city. His findings show that these expansions are associated with recipient pre-tax earnings growth of roughly 3–4 percent, primarily among single mothers—results that complement existing research showing that the EITC has a positive effect on labor market outcomes and household well-being.