Date(s) - 10/28/2019
12:00 pm - 1:00 pm
Categories No Categories
The Brown Bag Seminar Series offers current ECON graduate students the opportunity to present ongoing research or to workshop new ideas. The seminars are held on Mondays from 12:00-1:00pm in Clark C307 and are open to everyone.
October 28th’s presenter is ECON Ph.D. graduate student Kit Deming. He will be presenting his paper: “Does the Earned Income Tax Credit Birth Establishments?”
Abstract: The Earned Income Tax Credit (EITC) is a federal tax beneﬁt for working people with low to moderate incomes and is one of the largest cash-transfer programs in the United States. States can also implement their own EITC program to supplement the federal policy, and the generosity of these state beneﬁts varies. While the main beneﬁciary of the credit is the recipient, prior research has shown that some of the incidence falls on the employer as well in the form of lower wages paid to employees. Business could choose to locate in places with a state EITC policy, or in a state with a more generous EITC policy because they are seeking to capture some of the surplus from the policy. Using variation in the existence, timing, and generosity of state EITC policies, this paper will use a border county approach to test whether more establishments open in counties with an EITC policy compared to neighboring counties across the state border that do not have an EITC policy. The relative generosity of the state EITC policies will also be examined to determine whether the size of the credit is a inﬂuences where an establishment locate. This analysis will help determine if local EITC policies are viable for increasing labor demand in struggling locations