The effects of the 2009 Earned Income Tax Credit expansion on the labor supply of single women

The Earned Income Tax Credit (EITC) expansion in 2009 substantially expanded the benefit given to a family with three or more children compared to a family with two children, with one child, and with no children. Using national survey data and this differential increase in EITC benefits, this study analysis the effect of the 2009 EITC expansion on the labor supply of single women. I find that the 2009 expansion has no statistically significant effect on the labor force participation of those women with three or more children. Regarding the hours of work, I find evidence that the expansion reduced total hours worked by currently single female workers. However, I find no evidence of statistically significant changes in annual hours worked by all single women.