Question
This is for my Public Economics course. Accurate answer and explanation please. Thank you so much. ---- 1.The EITC increases the earnings of low-income workers.Another
This is for my Public Economics course. Accurate answer and explanation please. Thank you so much.
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1.The EITC increases the earnings of low-income workers.Another way to raise the earnings or low-income workers would be to increase the minimum wages of full-time workers.
a) Which policy would employers favor and why?
b) Which policy (EITC or minimum wage) better targets families with children and working-age adults?
c) Which policy might taxpayers who are not eligible for the EITC favor, if raising the minimum wage is accompanied by a reduction in the costs of the EITC?
2.A number of researchers have studied the effects that the EITC has on motivating more people to work (extensive margin) and on the hours worked among low-income recipients.The research results consistently find that the EITC increases labor force participation among those who previously did not work and does not discourage hours worked among those already in the workforce.Are these findings consistent with what might be expected by the theory on how the EITC might affect labor force participation and the number of hours worked?
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