Replication data for: Is the EITC as Good as an NIT? Conditional Cash Transfers and Tax Incidence

Principal Investigator(s): View help for Principal Investigator(s) Jesse Rothstein

Name	File Type	Size	Last Modified
data			10/13/2019 06:13:AM
programs			10/13/2019 06:13:AM
AEJPol-20080114_appendix.pdf	application/pdf	26.9 KB	10/13/2019 02:13:AM
AEJPol-20080114_manuscript.pdf	application/pdf	188.7 KB	10/13/2019 02:13:AM
LICENSE.txt	text/plain	14.6 KB	10/13/2019 02:13:AM
Readme.doc	application/msword	29.5 KB	10/13/2019 02:13:AM
Readme.pdf	application/pdf	20.1 KB	10/13/2019 02:13:AM
manifest.txt	text/plain	4.9 KB	10/13/2019 02:13:AM
tables.xls	application/vnd.ms-excel	118.5 KB	10/13/2019 02:13:AM

Project Citation:

Rothstein, Jesse. Replication data for: Is the EITC as Good as an NIT? Conditional Cash Transfers and Tax Incidence. Nashville, TN: American Economic Association [publisher], 2010. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114728V1

Project Description

Summary: The EITC is intended to encourage work. But EITC-induced increases in labor supply may drive wages down. I simulate the economic incidence of the EITC. In each scenario that I consider, a large portion of low-income single mothers' EITC payments is captured by employers through reduced wages. Workers who are EITC ineligible also see wage declines. By contrast, a traditional Negative Income Tax (NIT) discourages work, and so induces large transfers from employers to their workers. With my preferred parameters, $1 in EITC spending increases after-tax incomes by $0.73, while $1 spent on the NIT yields $1.39. (JEL H22, H23, H24, H31, J22)

Scope of Project

JEL Classification:
      H22 Taxation and Subsidies: Incidence
      H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
      H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
      H31 Fiscal Policies and Behavior of Economic Agents: Household
      J22 Time Allocation and Labor Supply

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V1 [2019-10-13]

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