The Effects of the EITC and Recent Reform
ABSTRACT Evidence relating unemployment to health is found at every level of social science analysis from national population rates to individual psychophysiological stress response. At the population level of analysis, increase in the unemployment rate indicates recession and/or structural economic decline. At the individual level, unemployment is interpreted as a stressful life event. In both cases, inverse associations are found between measures of unemployment and indicators of health. We identify social science literatures associating health indicators with each of the following: economic growth, socioeconomic status, sociocultural change, economic instability, the status of being unemployed, social stress and work stress. Outstanding research issues include the requirements to identify and measure the effects of conditional factors and control variables in multivariate analysis and to examine a broader range of both severity of unemployment and severity of health outcomes. A research agenda proposes studies at the macro, meso and micro levels of analysis. We urge such research for its potential contribution both to analytic social science and to economic and social policy.
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ABSTRACT: The authors begin with a detailed assessment then perform empirical analyses to predict the outcomes of changes to the structure of the program.American Economic Review 05/2002; 92(2):373-379. DOI:10.1257/000282802320191642 · 2.69 Impact Factor
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ABSTRACT: This paper presents the case for investing more in young American children who grow up in disadvantaged environment. It is argued that, on productivity grounds, it makes sense to invest in young children from disadvantaged environments. Substantial evidence shows that these children are more likely to commit crime, have out-of-wedlock births and drop out of school. Early interventions that partially remediate the effects of adverse environments can reverse some of the harm of disadvantage and have a high economic return. They benefit not only the children themselves, but also their children, as well as society at large [NBER WP 13016].Review of Agricultural Economics 02/2007; 29(3):446-493. DOI:10.2307/4624854 · 0.64 Impact Factor
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ABSTRACT: In this paper we examine the effect of the EITC on the employment rates of adults who received welfare (AFDC) during the 1990s. The first part of the paper begins with a description of the changes in the EITC over the last ten years, its administration, and what is known about its of the changes in the EITC over the last ten years, its administration, and what is known about its welfare policy changes, earned income tax credit (EITC) increases in 1990 and 1993, and changes in local labor market conditions on the behavior of families who received welfare benefits in California during the early part of the 1990s. The data on welfare recipients that we analyze are drawn from the California Work Pays Demonstration Project (CWPDP). The CWPDP incorporated experimental variation in the benefits package received by treatment and control households drawn from California?s AFDC caseload in four counties during the first half of the 1990s. This experimental variation is used to help identify the effects of welfare changes from the effects of the EITC expansions and the effects of local labor market conditions over this same period. We use a variety of county-level labor market indicators to account for the influence that the local labor market had on the employment rates of heads of households in the CWPDP sample. We also exploit a change in the EITC in 1994 when the credit became significantly more generous for families with two or more children, relative to families with only one child. Our evidence is consistent with the EITC having large, positive effects on employment of adults from welfare families in California . This paper appears as Chapter 3 in the edited volume The Incentives of Government Programs and the Well-Beings of Families. To view the contents of the entire volume, please click here.