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More than just work: The effect of the Earned Income Tax Credit on job quality

Katherine Michelmore & Natasha Pilkauskas

Labour Economics2026https://doi.org/10.1016/j.labeco.2026.102867article
AJG 3ABDC A*
Weight
0.50

Abstract

• Beyond increasing extensive-margin labor supply, the Earned Income Tax Credit (EITC) induces unmarried mothers to work more, earn higher wages, and work in jobs that provide access to fringe benefits such as employer-provided health insurance and retirement plans. • The EITC does not induce women to obtain high-quality professional occupations but does increase the likelihood of working in middle-income jobs in manual labour and transportation. Unmarried mothers also enter low-paying service sector jobs, but at similar rates as comparable working women. • We find some evidence that the EITC induces mothers to overwork (work more than 45 hours per week) and hold multiple jobs simultaneously. • Overall, the findings paint a nuanced picture of how the EITC affects job quality among unmarried mothers and provide insights on potential mechanisms through which the EITC affects a host of other outcomes for both children and adults Using a simulated benefits approach and data from the Current Population Survey we examine how expansions to the EITC affected the job quality of unmarried mothers in the U.S. Following expansions to the EITC, we find increases in employment, wages, and fringe benefits such as employer-provided health insurance and retirement plans among unmarried mothers, all indicators of improvements in job quality. On the other hand, we also find evidence that the EITC increases overwork, or working more than 45 hours per week, a negative indicator of job quality. Though mothers are not moved into high-quality professional jobs, they are more likely to work in manual labour and transportation occupations, which are middle-income jobs, and these mothers are also more likely to have a unionized job, which is correlated with other positive job quality measures. Overall, the findings paint a nuanced picture of how the EITC affects job quality among unmarried mothers, with many indicators of improvements in job quality, alongside a few indicators of declines in job quality.

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https://doi.org/https://doi.org/10.1016/j.labeco.2026.102867

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@article{katherine2026,
  title        = {{More than just work: The effect of the Earned Income Tax Credit on job quality}},
  author       = {Katherine Michelmore & Natasha Pilkauskas},
  journal      = {Labour Economics},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1016/j.labeco.2026.102867},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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