Does the earned income tax credit encourage c


The Earned Income Tax Credit (EITC) – a cash transfer program aimed at helping low-to-middle-income workers with tax relief – is not designed as a university grant, but its criteria are eligibility encourage families to send children aged 19. -23 years in college, as this can increase EITC benefits up to $4,000 per year. An analysis in Economic survey by researchers at the University of Illinois at Chicago found that EITC recipients generally do not respond to this incentive because it does not appear to increase college enrollment.

The results suggest that complex grants like this built into the EITC may be ineffective in changing college attendance.

“Our study and previous work suggests that tax credits are simply an inefficient way to encourage college enrollment because they are too complicated and involve a long delay between college enrollment and graduation. receipt of benefits,” said corresponding author and doctoral student Shogher Ohannessian. “Research suggests that if tax credits were provided as grants instead of tax credits, we could dramatically increase college enrollment rates at no additional cost,” added co-author Ben Ost. , PhD.

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