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a) Draw the profile of Earned Income Tax Credit (EITC) as a function of pre-tax earnings, focusing on the general shape. Explain the incentives for
- a) Draw the profile of Earned Income Tax Credit (EITC) as a function of pre-tax earnings, focusing on the general shape. Explain the incentives for labor supply at various phases of the credit profile.
b) What is the empirical evidence on EITC, labor supply and wage effects?
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Principles of Economics
Authors: N. Gregory Mankiw
8th edition
1305585127, 978-1305971493, 978-1337516860, 1337516864, 978-0357539200, 978-1305585126
