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The EITC Versus Wage Subsidies

19 Sep 2007 03:14 pm

Don't let your eyes glaze over - it's one of the most interesting anti-poverty debates, I swear. Megan digs in to the difficulties with the EITC here, while Matt makes the liberal case for a much more generous, much less strictly-policed EITC here. The smartest case for wage subsidies can be found here or here, from the recent Nobel winner Edmund Phelps. (I should note that Reihan and I will make a somewhat-less-brilliant case for wage subsidies in our forthcoming book.)

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