Journal Article

How do EITC recipients spend their refunds?


Abstract: 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.

Keywords: Earned income tax credit; Durable goods, Consumer;

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Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Economic Perspectives

Publication Date: 2008

Volume: 32

Issue: Q II