How the Federal Earned Income Tax Credit Has Quietly Helped Reduce Domestic Violence

Fifty years after the Federal Earned Income Tax Credit (EITC) became law, researchers have uncovered an unexpected and significant benefit of the long-standing anti-poverty program: a measurable reduction in intimate partner violence (IPV). While the EITC has always been discussed in terms of reducing poverty and encouraging employment, new research shows it has also played a meaningful role in improving personal safety for tens of thousands of women in the United States.

The findings come from a team of economists at the University of Connecticut (UConn) and the City University of New York (CUNY), who examined how changes in income tied to the EITC affected domestic violence rates over time. Their work adds a new dimension to how policymakers and the public might think about income support programs—not just as economic tools, but also as instruments with broader social consequences.

What the Earned Income Tax Credit Is and Why It Matters

The Earned Income Tax Credit is a refundable federal tax credit designed for low- to moderate-income workers who meet certain employment requirements. First signed into law by President Gerald Ford in March 1975, the EITC was intended to reward work, reduce poverty, and offset payroll taxes for lower-income households.

Unlike many tax credits, the EITC is refundable, meaning that if the credit exceeds the amount of taxes owed, the taxpayer receives the difference as a refund. In practical terms, this often results in direct cash payments, commonly around $1,000 per year, with larger amounts available for workers who have children. For families living on tight budgets, even a relatively modest annual increase in income can make a substantial difference.

The program underwent a major expansion in 1993, under President Bill Clinton, as part of the Omnibus Budget Reconciliation Act. That expansion significantly increased benefits, especially for families with children, and is the focal point of the new research.

The Study Behind the Headlines

The study, titled Intimate Partner Violence and Income: Quasi-Experimental Evidence from the Earned Income Tax Credit, was published in The Journal of Law and Economics, a peer-reviewed journal from the University of Chicago. The research team included David Simon, an associate professor of economics at UConn; Resul Cesur, a finance professor at UConn; and Núria Rodríguez-Planas and Jennifer Roff from CUNY.

To understand the EITC’s impact on domestic violence, the researchers analyzed data from the National Crime Victimization Survey (NCVS) covering the years 1992 to 2000. This period allowed them to compare rates of intimate partner violence before and after the 1993 expansion of the tax credit.

Their focus was on physical and sexual violence committed by intimate partners, particularly among unmarried women with lower levels of education, a group more likely to be eligible for the EITC and more vulnerable to IPV.

What the Researchers Found

The results were striking. According to the study, the EITC expansion led to a 9.73% decrease in the prevalence of physical and sexual intimate partner violence among unmarried, low-educated women. Even more notable, the number of violent incidents fell by 21% for this group.

In other words, the tax credit was associated not only with fewer women experiencing violence, but also with fewer violent episodes overall. These effects were considered large by the standards of social policy research, especially given that the EITC was never designed with domestic violence prevention in mind.

The researchers estimate that since the 1993 expansion, nearly 42,000 fewer women have experienced intimate partner violence as a result of the policy. When translated into economic terms—accounting for healthcare costs, lost productivity, and criminal justice expenses—the benefit amounts to roughly $4.3 billion in 2003 dollars.

Why More Income Can Mean Less Violence

The connection between income and domestic violence is complex, and the research team was careful to address this. In some contexts, especially in developing countries, higher income for women can actually increase domestic violence if abusive partners attempt to reassert control or extract resources.

However, the U.S. context—and the structure of the EITC—appears to work differently. The researchers identified several mechanisms that help explain the reduction in IPV.

First, the EITC encourages employment, particularly among single mothers. Increased time spent at work means less time spent at home, which can reduce exposure to abusive partners. This effect became especially clear when compared to periods like the COVID-19 pandemic, when forced confinement at home coincided with spikes in domestic violence.

Second, the credit reduces financial stress, a known risk factor for domestic abuse. When households experience less economic pressure, conflicts tied to money can decrease, and victims may have more flexibility to make safer choices.

Third, the additional income—combined with employment—can modestly improve a woman’s economic independence, giving her more bargaining power or the ability to leave unsafe situations if necessary.

Domestic Violence as a Widespread and Costly Problem

The findings are particularly important given the scale of intimate partner violence in the United States. Research shows that about one in four women experience IPV at some point in their lives. Each year, an estimated 10 million women are victims of rape, physical violence, or stalking by an intimate partner.

According to data from the Centers for Disease Control and Prevention (CDC), the lifetime economic cost of IPV in the U.S. is approximately $3.6 trillion, or about $103,767 per victim, when accounting for medical care, lost productivity, and criminal justice costs.

Against this backdrop, the reduction in violence associated with the EITC represents not just a human benefit, but a significant efficiency gain for society as a whole.

How This Compares to Direct Anti-Violence Policies

An interesting takeaway from the study is how the EITC compares to programs specifically designed to address domestic violence. The researchers note that some targeted interventions, such as the National Lethality Assessment Protocol, have not produced significantly larger reductions in IPV than those observed from the tax credit.

This does not mean targeted programs are ineffective or unnecessary, but it does suggest that economic policy can play a powerful supporting role in addressing social problems that are often treated in isolation.

Why This Research Matters for Policy

For decades, discussions around the EITC have focused on poverty reduction and work incentives, both areas where the program has proven effective. This research adds a third, largely overlooked dimension: personal safety and social well-being.

The findings suggest that policies aimed at improving income stability can generate meaningful spillover benefits, even in areas policymakers did not originally anticipate. In the case of the EITC, a program designed to help people work their way out of poverty has also helped make thousands of women safer in their own homes.

As debates continue about the future of social welfare programs, this research provides strong evidence that income support policies can have far-reaching and deeply human impacts beyond their original goals.

Research paper:
Cesur, R., Simon, D., Rodríguez-Planas, N., & Roff, J. (2025). Intimate Partner Violence and Income: Quasi-Experimental Evidence from the Earned Income Tax Credit. The Journal of Law and Economics. DOI: https://doi.org/10.1086/735360