Federal Reserve Bank of Chicago
How do EITC recipients spend their refunds?
The authors determine what items are purchased using the earned income tax credit (EITC)—one of the largest sources of public support for lower-income working families in the U.S. They find that recipient households’ EITC payments are used primarily for vehicle purchases and transportation spending, both of which are crucial to job access and consistent with the EITC’s prowork goals.
Cite this item
Andrew Goodman-Bacon & Leslie McGranahan, "How do EITC recipients spend their refunds?"
, Federal Reserve Bank of Chicago, Economic Perspectives, issue Q II, pages 17-32, 2008.
Keywords: Earned income tax credit ; Durable goods; Consumer
This item with handle RePEc:fip:fedhep:y:2008:i:qii:p:17-32:n:v.32no.2
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