Research Monographs

A study about the effect of Earned Income Tax Credit (EITC) on the working and the workable poor

A study about the effect of Earned Income Tax Credit (EITC) on the working and the workable poor

  • Author

    Park, Soeun

  • Publication Date

    2021

  • Pages

    145

  • Series No.

    연구보고서(수시) 2021-07

  • Language

    kor

In the initial phase, EITC was not applied to households having the benefits from the National Basic Livelihood Security System (NBLSS). Then, it has been available for them with NBLSS since 2015. Our study aims to analyze the effect of this change in EITC on the labor participation of the working and workable poor, considering that many of the NBLSS recipients live below the poverty line. Due to data availability, we roughly estimate the effect by focusing on two groups, one receiving only NBLSS and the other receiving both NBLSS and EITC. The results indicate that EITC could increase the labor participation of NBLSS recipients, but it seems to be limited to some NBLSS recipients who do not live in poverty. The results imply that we need to contemplate the more effective ways to help the poor pull themselves out of poverty through work.

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