The Impact of Social Networks on EITC Claiming Behavior

A-Tier
Journal: Review of Economics and Statistics
Year: 2022
Volume: 104
Issue: 5
Pages: 929-945

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

Using the Social Connectedness Index (Bailey, Cao, Kuchler, Stroebel et al., 2018) to capture county-to-county Facebook linkages, I explore how county-level earned income tax credit (EITC) claiming behavior changes when the county's out-of-state social network is exposed to a newly implemented state EITC. Having more out-of-state friends face a state EITC shifts the composition of EITC claims toward more self-employment claiming. EITC-claiming households' income distribution also shifts, moving away from the EITC region with smaller credits, toward income levels that generate the largest EITC. This mimics the direct impacts of state-level EITC policies, consistent with social networks increasing information or salience about EITC policy.

Technical Details

RePEc Handle
repec:tpr:restat:v:104:y:2022:i:5:p:929-945
Journal Field
General
Author Count
1
Added to Database
2026-01-29