The Earned Income Tax Credit will probably ________ the labor force participation of low-wage workers and ________ the labor market hours of those with earning in the range that the tax credit is being phased out.

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The Earned Income Tax Credit provides a financial incentive for low-wage workers to enter the labor force and increase their hours worked. Therefore, it will increase the labor force participation of low-wage workers. However, as the tax credit is phased out for higher earners, it may create a disincentive for those individuals to work longer hours, resulting in a decrease in their labor market hours.

The Earned Income Tax Credit Will Probably ________ the Labor