The EITC, Tax Refunds, and Unemployment Spells

A-Tier
Journal: American Economic Journal: Economic Policy
Year: 2013
Volume: 5
Issue: 2
Pages: 188-221

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The earned income tax credit generates large average tax refunds for low-income parents, and these refunds are distributed in a narrow time frame. I rely on this plausibly exogenous source of variation in liquidity to investigate the effect of cash on hand on unemployment duration. Among EITC-eligible women, unemployment spells beginning just after tax refund receipt last longer than unemployment spells beginning at other times of year. There is no evidence that tax refund receipt is associated with longer unemployment duration for men, or that the longer durations for women are associated with higher-quality subsequent job matches. (JEL H24, J64)

Technical Details

RePEc Handle
repec:aea:aejpol:v:5:y:2013:i:2:p:188-221
Journal Field
General
Author Count
1
Added to Database
2026-01-25