Economic insights for a more equitable society
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Working paper— 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.
Author: Aida Farmand
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Copyright ©2023 Schwartz Center for Economic Policy Analysis The New School
Copyright ©2023 Schwartz Center for Economic Policy Analysis The New School