Heterogeneous Employment Effects of the EITC

I study the heterogeneous effects of the Earned Income Tax Credit (EITC) on the employment of low-educated unmarried mothers. This work expands upon Schanzenbach and Strain (2021). I use a difference-in-difference strategy using variation in the maximum possible EITC benefits between unmarried women without children and unmarried mothers. I find similar increases in employment for mothers of different races and ages. I find stronger effects for mothers with less than a high school diploma of education, and I only find positive effects of EITC on employment prior to 1993.

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