Earned Income Tax Credit and Wages: A Study of Swedish Panel Data
This thesis examines how the introduction of an Earned Income Tax Credit (EITC) in Sweden in 2007 may have affected pre-tax salaries. Previous research has found that the incidence of an EITC may not be entirely carried by the employees, which in some earlier research is assumed. A reduction in pre-tax salaries implies that a portion of the tax credit benefits the employers. If true, an EITC may i