Evidence of the Earned Income Tax Credit Marriage Penalty Relief

Abstract:     
The passage of the 2001 legislation that contains marriage-penalty-relief provisions renews interest in whether the Earned Income Tax Credit (EITC) influences the marriage decision. Using a sample of cohabiting women with children from the 2001 panel of the Survey of Income and Program Participation, I describe the distribution of the changes in the EITC marriage incentives associated with the EITC expansion for married couples in 2001 and examine whether the changes in the EITC marriage incentives are correlated with marriage decisions.

Keywords: Earned Income Tax Credit, Marriage Penalty Relief

JEL Classifications: H31, J12

Working Paper Series