Why has the Earned Income Tax Credit (EITC) increased employment among single mothers?

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The Earned Income Tax Credit (EITC) provides a certain amount of tax relief for families with children. This has specifically helped single mothers by increasing their employment since it provides a financial incentive for them to work. The credit is refundable, which means that if the credit is larger than the taxes owed, the recipient receives the difference as a refund. This refund can provide additional income to help cover the costs of childcare or transportation to work, making it easier for single mothers to pursue employment opportunities.

Why Has the Earned Income Tax Credit (EITC) Increased Employment