Code for: Can Nudges Increase Take-up of the EITC? Evidence from Multiple Field Experiments

Principal Investigator(s): View help for Principal Investigator(s) Elizabeth Linos, University of California-Berkeley; Allen Prohofsky, Franchise Tax Board; Aparna Ramesh, University of California-Berkeley; Jesse Rothstein, University of California-Berkeley; Matthew Unrath, University of California-Berkeley

Version: View help for Version V1

Name	File Type	Size	Last Modified
A. Fuzzy match			06/07/2021 12:50:PM
B. S5-6 Analysis			06/07/2021 12:50:PM
C. S1-4 Analysis			06/07/2021 12:50:PM
Supplementary materials			06/07/2021 12:51:PM
stata packages			06/07/2021 12:50:PM
Linos_etal_EITC.pdf	application/pdf	4.4 MB	06/07/2021 08:50:AM
README.pdf	application/pdf	106.7 KB	06/07/2021 08:49:AM
fig1_graphic.ltx	text/plain	4.2 KB	08/14/2021 02:31:PM

Project Citation:

Linos, Elizabeth, Prohofsky, Allen, Ramesh, Aparna, Rothstein, Jesse, and Unrath, Matthew. Code for: Can Nudges Increase Take-up of the EITC? Evidence from Multiple Field Experiments. Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-10-20. https://doi.org/10.3886/E142221V1

Project Description

Summary:

Replication code and instructions, plus supplementary information

Paper abstract:

The Earned Income Tax Credit (EITC) distributes more than $60 billion to over 20 million low-income families annually. Nevertheless, an estimated one-fifth of eligible households do not claim it. We ran six pre-registered, large-scale field experiments to test whether “nudges” could increase EITC take-up (N=1 million). Despite varying the content, design, messenger, and mode of our messages, we find no evidence that they affected households’ likelihood of filing a tax return or claiming the credit. We conclude that even the most behaviorally informed low-touch outreach efforts cannot overcome the barriers faced by low-income households who do not file returns.

Funding Sources: Abdul Latif Jameel Poverty Action Lab; Arnold Ventures; Tipping Point Community; University of Wisconsin. Institute for Research on Poverty; Horowitz Foundation for Social Policy; James Irvine Foundation

Scope of Project

Subject Terms: EITC; take-up; administrative burden; nudge; tax administration

JEL Classification:
      D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
      H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
      H26 Tax Evasion and Avoidance
      I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs

Geographic Coverage: California

Time Period(s): 2018 – 2019 (Tax years 2017 and 2018)

Universe:
Potential tax filers in California

Data Type(s): program source code

Methodology

Data Source: Administrative records from Franchise Tax Board and California Department of Social Services.

Unit(s) of Observation: Families, Individuals

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Published Versions

V1 [2022-10-20]

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