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KMID : 1001320070310010261
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Social Welfare Policy
2007 Volume.31 No. 1 p.261 ~ p.286
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The Earned Income Tax Credit: Analysis using Difference-in-Differences Method
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Yoo Ji-Young
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Abstract
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This paper examines the impact of the Omnibus Reconciliation Act of 1993 (OBRA93), which included an expansion of the earned income tax credit, on the disposable income and poverty among low-educated single women with children. I identify the impact of OBRA93 by comparing the change in poverty of low-educated single women with children to the change for single women without children. For robustness check, I also find the impact of OBRA93 by comparing the change in poverty of low-educated single women with children to the change for highly-educated single women with children. The research findings suggest that between 1991-1993 and 1997-1999, low-educated single women with children increased their income and decreased poverty.
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KEYWORD
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EITC, Income, Poverty, Difference-in-Differences, Single mothers
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