EITC's Impact on Workers Who Don't Qualify

Aida Farmand

Jun 27

Written By SCEPA

RELAB WORKING PAPER

(485 KB)

Social Security benefits are progressive and reduce the unequal distribution of retirement wealth generated by a broken employer-based retirement systeThe Earned Income Tax Credit (EITC) can cause wage declines for workers who do not receive the tax credit.

If EITC recipients compete in the same labor markets as others who are ineligible for the credit, such as older workers, this can cause wage declines for workers who do not receive off-setting EITC payments. The study concludes that EITC's capacity to redistribute income is limited, and it further weakens workers' ability to bargain for better wages and working conditions.

ReLab Working Paperbargaining powerwage stagnationlaborEITColder workers

SCEPA

EITC's Impact on Workers Who Don't Qualify

IMF Working Paper: How Climate Disasters Affect Capital

How Economic Shocks Exacerbate Retirement Inequality

SCEPA is part of the Economics Department at The New School for Social Research