Working Papers

This paper revisits the evidence on the intergenerational effects of the Earned Income Tax Credit (EITC) on the adult income of individuals whose families received the tax credit during childhood. I build on Bastian and Michelmore (2018) and test new sources of variation and new multigenerational data. Identification exploits an instrument that draws variation from formulaic changes across states and years. The results show that tax credit transfers during childhood increase adult income between 1.5 and 3.4 percent. The effect is concentrated on transfers received between 0 and 5 years old and, contrary to previous studies, transfers during adolescence have no impact on income. The intergenerational impact of the tax credit is driven by children of mothers working the fewest hours in the distribution, suggesting that work conditions offset the benefits of intergenerational poverty alleviation. The paper concludes that intergenerational poverty alleviation requires carefully accounting for the link between work incentives and the development of children. 

This paper presents novel evidence on the impact of the Earned Income Tax Credit (EITC) on wages, employment, and the number of establishments across industries and occupations using establishment survey data. Despite extensive research on the EITC's effects using household surveys, questions remain about how the program shapes firm-level labor market outcomes. I exploit variation from the staggered implementation of state EITC supplements and differences in exposure across industries/occupations. The analysis finds that wages decrease by 8\% in exposed industries and occupations after EITC enactment, but this effect is transitory. There is little evidence of changes in employment levels or number of establishments. The wage effects concentrate in service industries and occupations. While employment effects are inconclusive, the significant temporary wage reductions underscore the program's influence on labor markets. The paper provides new insights into heterogeneous labor market responses to the EITC across different industries and occupations using previously unexplored data sources.

This paper examines the distinction between voluntary and coercive exchanges in market and non-market domains. While markets are viewed as voluntary, coercion often defines political and historical economic practices, as seen in modern forced labor. Using a principal-agent model, the study explores whether markets themselves can be coercive. Drawing on James Buchanan’s theories, it contrasts market agreements with the inherent coercion in political decisions. The analysis concludes that while economic constraints are inevitable, coercion arises when one party deliberately restricts another’s choices. The paper highlights the importance of context in assessing market exchanges within a liberal order.

We study the relationship between police departments acquiring military hardware and the failure to disclose the killings of civilians in reports to the federal government. While military hardware may be an input to citizen deaths - there should not be a direct effect on the non-reporting of those deaths. We examine the timing of non-disclosed deaths and the acquisition of military hardware, and find evidence supporting both adverse selection and moral hazard. These results call into question the interpretation of previous results, and finds that the federal government has failed to monitor the local law enforcement agencies to whom it gave lethal capabilities.