Labor supply responses to tax credit disbursements: Evidence from the EITC schedule
Abstract
Abstract The Earned Income Tax Credit (EITC) schedule and lump‐sum disbursement can create significant labor supply responses. I estimate labor supply responses to tax credit disbursements using a regression kink design. Among single workers, credits increase labor supply around the time that tax credits are disbursed at the first and second kinks in the EITC schedule but reduce labor supply on the intensive margin at the third kink. There is some evidence of heterogeneous responses among married women, including an increase in labor supply near the third kink, although findings in the sample of married women appear less robust.
Fields of Study & Subjects
Gender
Labor
and Family Dynamics
Financial Literacy
Pension
Retirement Analysis
Work-Family Balance Challenges
Publication details
- Journal / source
- Economic Inquiry
- Volume
- 64
- Issue
- 2
- Pages
- 555–573
- Publication date
- 10 January 2026
- Language
- EN