The Labor Market Effects of State and Local Expansions of the Earned Income Tax Credit

This study analyzes the labor market impact of state and local supplements to the federal Earned Income Tax Credit (EITC) program. Using Current Population Survey data from 1984 to 2006, the study concludes the differential impact of the state and local government supplements of the EITC on the labor force participation rates of married women. In particular, states and local counties with an EITC supplement witness higher labor force participation rates amongst married women. However, no such differential impact is observed for the demographic group of unmarried females