The Self-Employment Effects of the EITC in the Gig Economy
Abstract
The Earned Income Tax Credit (EITC) is designed to encourage work, but its impact on self-employment is often seen as changes in reporting, not real employment. This might not be surprising, because starting a business can be risky, uncertain, and logistically complicated, potentially keeping EITC-eligible workers from pursuing self-employment. However, gig platforms like Uber might reduce the barriers to entering self-employment. Exploiting state-level EITC policies and Uber’s market entry, I find that when Uber is operating in the market, the EITC leads to additional small, significant increases in real self-employment among single-headed households, shifting household income toward larger credits.
Fields of Study & Subjects
Gender
Labor
and Family Dynamics
Digital Economy and Work Transformation
Economic and Fiscal Studies
Publication details
- Journal / source
- National Tax Journal
- Volume
- 79
- Issue
- 1
- Pages
- 107–136
- Publication date
- 2 February 2026
- Language
- EN