Replication data for: Using Differences in Knowledge across Neighborhoods to Uncover the Impacts of the EITC on Earnings
- Chetty, Raj
- Friedman, John N.
- Saez, Emmanuel
AbstractWe estimate the impacts of the Earned Income Tax Credit on labor supply using local variation in knowledge about the EITC schedule. We proxy for EITC knowledge in a Zip code with the fraction of individuals who manipulate reported self-employment income to maximize their EITC refund. This measure varies significantly across areas. We exploit changes in EITC eligibility at the birth of a child to estimate labor supply effects. Individuals in high-knowledge areas change wage earnings sharply to obtain larger EITC refunds relative to those in low-knowledge areas. These responses come primarily from intensive-margin earnings increases in the phase-in region.
Is supplement to
DOI: 10.1257/aer.103.7.2683 (Text)
Chetty, Raj, John N Friedman, and Emmanuel Saez. “Using Differences in Knowledge Across Neighborhoods to Uncover the Impacts of the EITC on Earnings.” American Economic Review 103, no. 7 (December 2013): 2683–2721. https://doi.org/10.1257/aer.103.7.2683.
- ID: 10.1257/aer.103.7.2683 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12