Chart: The Earned Income Tax Credit increases employment at the expense of lowering pretax wages : Labor supply effects of EITC in a perfectly competitive labor market | Economic Policy Institute

Figure b

The Earned Income Tax Credit increases employment at the expense of lowering pretax wages : Labor supply effects of EITC in a perfectly competitive labor market

The Earned Income Tax Credit increases employment at the expense of lowering pretax wages : Labor supply effects of EITC in a perfectly competitive labor market

Source: Authors’ analysis of EITC incidence in a perfectly competitive labor market

This chart appears in:

The EITC and minimum wage work together to reduce poverty and raise incomes

Previous chart: « Hispanic women make less than white non-Hispanic men at every education level: Average hourly wages, by gender, race, and education, 2018

Next chart: The minimum wage prevents pretax wages from falling due to increased labor supply: Employment and wage effects of the minimum wage in the presence of the EITC »