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Earned Income Tax Credit Experiments in the People’s Republic of China
Gan Li, Guo Xiongfei, He Qing, Wang Junhui 2020-06-23
As more households in the People’s Republic of China (PRC) are lifted out of poverty, it becomes increasingly difficult to address the remaining poor by implementing traditional cash transfer programs due to inaccurate identification and the welfare dependency issue. One solution is to implement an incentive-compatible transfer program such as the Earned Income Tax Credit (EITC) in the United States. Starting in 2014, the China Household Finance Survey (CHFS) conducted a series of experiments. Evaluations present unambiguously strong evidence that EITC increases labor supply, earning, and expenditure in the PRC. Inspired by the early success, many Chinese local governments have been trying to come up with their own EITC-like programs or trials. This paper will discuss some of the ongoing experiments or trials in the PRC.
이전글 | 2020년 중국의 신형 인프라 투자 7대 분야 | 2020-06-24 |
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다음글 | 2020년 중국의 6대 정책 방향과 시사점 | 2020-06-23 |