Publication Date

2020

Publisher

Social Policy Institute at Washington University in St. Louis

Summary

This paper investigates how saving the federal tax refund affects gig economy participation for low-income online tax filers in the six months following tax filing. Using longitudinal survey and administrative data, we leverage random assignment in a unique refund savings experiment as an instrument for refund savings. We find significant heterogeneity in estimated effects that are consistent with life cycle models on consumption and savings. Specifically, refund savings reduced the likelihood of low-income students working in the gig economy, but increased the likelihood of more economically vulnerable households working in the gig economy. (JEL J22, D14, G51).

Document Type

Report or White Paper

Notes

Permanent URL: Refund to Savings (R2S)

DOI:

https://doi.org/10.7936/yann-7844

Project

Refund to Savings (R2S)

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