scholarly journals An Hourly-Wage-Based Earned Income Tax Credit: Implications For Workers, Employers, And Taxpayers

2011 ◽  
Vol 2 (2) ◽  
Author(s):  
Ralph D. Husby
Keyword(s):  
Minimum Wage ◽  
Income Tax ◽  
Earned Income Tax Credit ◽  
The Other ◽  
Hourly Wage ◽  
Annual Income ◽  
Tax Credit ◽  
Earned Income ◽  
Other Hand

What is the best way to compensate low-paid workers? A generous minimum wage may cause substantial unemployment and serious dislocations. The current combination of a modest minimum wage plus the annual-income-based earned income tax credit is, in some cases, a disincentive to work. An hourly-wage-based earned income tax credit, on the other hand, may be the most efficient and effective way to compensate the low-wage worker.

The Optimal Policy Combination of the Minimum Wage and the Earned Income Tax Credit

2009 ◽  
Vol 9 (1) ◽  
Author(s):  
Miki Malul ◽  
Israel Luski
Keyword(s):  
Human Capital ◽  
Minimum Wage ◽  
Income Tax ◽  
Low Cost ◽  
Earned Income Tax Credit ◽  
Total Output ◽  
Tax Credit ◽  
Earned Income ◽  
Model Studies ◽  
Short Horizon

Abstract This paper evaluates the consequences of minimum wage (MW) and earned income tax credit (EITC) in a model with heterogeneous costs of investment in human capital. Our model studies the effects of a MW and an EITC on employment, productivity, and total output for two types of groups: those with a low cost of acquiring human capital and a long horizon of earnings (Type Ys); and those with a high cost of acquiring human capital and a short horizon of earnings (Type Os). We assume that Type Ys consider investing in human capital while Type Os have a certain predetermined level of human capital and do not consider changing it. Our model suggests that a government might consider imposing a MW exclusively for Type Y individuals and an EITC exclusively for Type O individuals. Some of the best effects of each policy would therefore be obtained and some of the worst consequences would be avoided.

scholarly journals The minimum wage versus the earned income tax credit for reducing poverty

2021 ◽  
Author(s):  
Richard V. Burkhauser ◽  
◽  
Kevin Corinth ◽  
Keyword(s):  
Minimum Wage ◽  
Income Tax ◽  
Earned Income Tax Credit ◽  
Tax Credit ◽  
Earned Income

scholarly journals Does a Higher Minimum Wage Enhance the Effectiveness of the Earned Income Tax Credit?

ILR Review ◽  
2011 ◽  
Vol 64 (4) ◽  
pp. 712-746 ◽  
Author(s):  
David Neumark ◽  
William Wascher
Keyword(s):  
Minimum Wage ◽  
Income Tax ◽  
Earned Income Tax Credit ◽  
Tax Credit ◽  
Earned Income
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