More than just work: The effect of the Earned Income Tax Credit on job quality

Using a simulated benefits approach and data from the Current Population Survey we examine how expansions to the EITC affected the job quality of unmarried mothers. Unmarried mothers who move into the labor force because of the EITC work more hours and earn similar wages as their already working peers but are more likely to receive fringe benefits (private health insurance and retirement plans) and work in unionized jobs than their peers who are already working. Rates of overwork and multiple job holding are similar across mothers moved into the labor force and comparison women, and earnings and hours volatility were also similar across groups. Unmarried mothers induced to work by the EITC are more likely to take jobs in manual labor and transportation, and less likely to take professional and sales jobs, compared to their working peers. Rates of service work are similar for mothers who are induced into the labor force as compared to women who are already working, resulting in a net neutral effect on occupational quality. Indices of job quality suggest overall the EITC improves job quality for unmarried mothers; however, analyses by race/ethnicity suggest that many of the benefits from the EITC on job quality confer to White mothers (and Hispanic mothers to a lesser extent), whereas Black mothers gain the least.