Earned Income Tax Credit and crime

Lenhart, Otto (2020) Earned Income Tax Credit and crime. Contemporary Economic Policy. ISSN 1465-7287 (In Press)

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Abstract

This study examines the relationship between EITC laws and crime. Using data from 1999 to 2017, a period with 73 state EITC changes, I evaluate the effects of state-level EITCs on violent and property crime. Estimating difference-in-differences models, I find that higher EITCs are associated with significant reductions in violent crime, while not affecting property crimes. Introducing high state EITC is associated with a 10.0 percent reduction in violent crimes, which corresponds to 40 fewer crimes per 100,000 individuals. Event study estimates confirm the negative association between EITC generosity and violent crime.

ORCID iDs

Lenhart, Otto ORCID logoORCID: https://orcid.org/0000-0003-0949-4820;
  • Item type:Article
    ID code:74873
    Dates:
    Date
    Event
    8 December 2020
    Published
    8 December 2020
    Accepted
    Keywords:Earned Income Tax Credit, violent crime, property crime, Economic History and Conditions, Public Administration, Business, Management and Accounting(all), Economics and Econometrics
    Subjects:Social Sciences > Economic History and Conditions
    Department:Strathclyde Business School > Economics
    Depositing user: Pure Administrator
    Date deposited:11 Dec 2020 15:11
    Last modified:07 Apr 2023 01:21
    Related URLs:
    URI:https://strathprints.strath.ac.uk/id/eprint/74873
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