@article {Bitler319, author = {Marianne Bitler and Hilary Hoynes and Elira Kuka}, title = {Do In-Work Tax Credits Serve as a Safety Net?}, volume = {52}, number = {2}, pages = {319--350}, year = {2017}, doi = {10.3368/jhr.52.2.0614-6433R1}, publisher = {University of Wisconsin Press}, abstract = {We test the EITC{\textquoteright}s response to economic need. Using IRS data we exploit differences in timing and severity of economic cycles across states. Because the EITC requires earned income, there is a theoretical ambiguity in the credit{\textquoteright}s cyclicality. We find higher unemployment leads to increased likelihood of EITC recipiency and in credit amounts received for married couples but has insignificant effects for single individuals. The EITC{\textquoteright}s protective effects are concentrated among skilled workers. The EITC mitigates income shocks for married couples with children and groups likely to have moderate earnings, but does not for most recipients: single parents with children.}, issn = {0022-166X}, URL = {https://jhr.uwpress.org/content/52/2/319}, eprint = {https://jhr.uwpress.org/content/52/2/319.full.pdf}, journal = {Journal of Human Resources} }