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

Posted: 18 Apr 2001

See all articles by David T. Ellwood

David T. Ellwood

Harvard University - Harvard Kennedy School (HKS); National Bureau of Economic Research (NBER)

Abstract

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

Ellwood, David T., The Impact of the Earned Income Tax Credit and Social Policy Reforms on Work, Marriage, and Living Arrangements. National Tax Journal, Vol. 53, No. 4, December 2000. Available at SSRN: https://ssrn.com/abstract=251104

David T. Ellwood (Contact Author)

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States
617-495-1121 (Phone)
617-496-9053 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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