Suppose a researcher identifies the effect of the Earned Income Tax Credit (EITC) on the labor supply of single mothers by comparing the labor supply of those mothers after the EITC expansion with the labor supply of single women without children before and after the EITC expansion.Which of the following statements would cause the estimates from such a study to be biased?
A) Single women without children tend to work more hours than do single women with children.
B) Preferences regarding work among single women with children change over time.
C) Single women with children have higher income requirements for their larger family than do single women without children.
D) Preferences regarding work among single women with children remain the same over time.
Correct Answer:
Verified
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