Chetty, RajFriedman, JohnSaez, Emmanuel2016-06-102013Chetty, Raj, John N Friedman, and Emmanuel Saez. 2013. “Using Differences in Knowledge Across Neighborhoods to Uncover the Impacts of the EITC on Earnings.” American Economic Review 103 (7) (December): 2683–2721. doi:10.1257/aer.103.7.2683.0002-8282http://nrs.harvard.edu/urn-3:HUL.InstRepos:27304827We estimate the impacts of the Earned Income Tax Credit on labor supply using local variation in knowledge about the EITC schedule. We proxy for EITC knowledge in a Zip code with the fraction of individuals who manipulate reported self-employment income to maximize their EITC refund. This measure varies significantly across areas. We exploit changes in EITC eligibility at the birth of a child to estimate labor supply effects. Individuals in high-knowledge areas change wage earnings sharply to obtain larger EITC refunds relative to those in low-knowledge areas. These responses come primarily from intensive-margin earnings increases in the phase-in region.en-USUsing Differences in Knowledge Across Neighborhoods to Uncover the Impacts of the EITC on EarningsJournal Article2016-06-1010.1257/aer.103.7.2683