<p>The federal and state earned income tax credit (EITC) programs have been found to have significant positive effects on the labor force participation of low-income single mothers in a number of studies over the past 30 years. Another vulnerable group with low attachment to the labor force consists of people with disabilities, and policy analysts have suggested that a disability-related EITC program could increase their employment rates. We analyze the effects of EITC expansions on labor force participation among women with children and low levels of education, focusing on those who report a work limitation and those who report receiving Supplemental Security Income (SSI) disability benefits. Using models based on two different identification strategies and data sets, our findings are mixed. Our positive and significant estimates for women without disabilities are consistent with other studies in the literature. We also find a large increase in labor force participation after the 1994–1996 federal expansion among women who report SSI income but no work limitation. However, none of the estimates women with work limitations are statistically significant.</p>

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The EITC and Employment of Women with Disabilities

  • Reagan Baughman,
  • Andrew Houtenville

摘要

The federal and state earned income tax credit (EITC) programs have been found to have significant positive effects on the labor force participation of low-income single mothers in a number of studies over the past 30 years. Another vulnerable group with low attachment to the labor force consists of people with disabilities, and policy analysts have suggested that a disability-related EITC program could increase their employment rates. We analyze the effects of EITC expansions on labor force participation among women with children and low levels of education, focusing on those who report a work limitation and those who report receiving Supplemental Security Income (SSI) disability benefits. Using models based on two different identification strategies and data sets, our findings are mixed. Our positive and significant estimates for women without disabilities are consistent with other studies in the literature. We also find a large increase in labor force participation after the 1994–1996 federal expansion among women who report SSI income but no work limitation. However, none of the estimates women with work limitations are statistically significant.