IMPACT OF A LABOR INCOME REWARD PLAN: AN EARNED INCOME TAX CREDIT (EITC) EXPERIMENT IN CHINA

Starting Time 活動開始時間

January 22, 2021 at 5:00 PM UTC

(In your time zone. 閣下所在時區)

Participants 嘉賓

Li Gan

Organizers 主協辦機構

Columbia China Center for Social Policy, Columbia University Weatherhead East Asian Institute, Columbia School of Social Work, Center on Poverty and Social Policy at Columbia University.

Mode 活動形式
Online
Languages 語言
English
Description 詳情

China currently has no in-work benefit nor social welfare programs such as the Earned Income Tax Credit (EITC) in the United States. Yet, the literature and global evidence have suggested EITC-type programs’ potentials on poverty alleviation and work incentives. This study examines the first-ever EITC field experiment in China with strong treatment intensity (20% of household monthly income) and rigorous validation procedure. The two-year experiment on 259 households shows that the participation of the program increases employment by 0.33 person (14%) and monthly working hours by 81 hours (40%) per household. We also find significant increases in household earnings and expenditures. These effects are substantially larger than the existing literature partially because of the strong treatment intensity. Our study contributes to a large literature that studies the effect of in-work benefits.

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