PT - JOURNAL ARTICLE AU - Marianne Bitler AU - Hilary Hoynes AU - Elira Kuka TI - Do In-Work Tax Credits Serve as a Safety Net? AID - 10.3368/jhr.52.2.0614-6433R1 DP - 2016 Mar 08 TA - Journal of Human Resources 4099 - http://jhr.uwpress.org/content/early/2016/03/04/jhr.52.2.0614-6433R1.short 4100 - http://jhr.uwpress.org/content/early/2016/03/04/jhr.52.2.0614-6433R1.full AB - We test the EITC’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’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’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.