Teresa Ghilarducci & Aida Farmand

Teresa Ghilarducci is the Bernard L. and Irene Schwartz Professor of Economics at the New School for Social Research and director of the New School’s Retirement Equity Lab (ReLab). Aida Farmand is a ReLab research associate and is pursuing a Ph.D. in economics.

Recent Articles

What’s Not to Like About the EITC? Plenty, It Turns Out.

The Earned Income Tax Credit subsidizes low-wage employers and increases low-wage work.

M. Spencer Green/AP Photo Personal care and home health aide wages, on average about $11.00 per hour, only rose by 37 cents an hour from 2007 to 2017. The Earned Income Tax Credit is widely praised. A subsidy paid to low-wage workers depending on family size, the EITC expands labor force participation and increases income to families, which helps stabilize them. It helps working-poor women to become economically engaged, and improves the life chances of their children by keeping them in school, providing better food, and even increasing their vocabulary. It is one of the few policies on which Democrats and Republicans agree . Democrats like it because it puts more money in the pockets of the poor. Republicans like it because it rewards the so-called virtuous poor who work, and because government’s involvement is minimal. From a modest start in 1975, in 2018 some25 million eligible workers and families received approximately $63 billion in EITC credits. The average federal EITC...