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The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit: Reply

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  • Gordon B. Dahl
  • Lance Lochner

Abstract

Dahl and Lochner (2012) provides some of the first causal evidence of the effects of family income on child achievement using changes in the Earned Income Tax Credit. Unfortunately, a coding error in the creation of total family income affects the first stage estimates and inflates the instrumental variable (IV) estimates. Importantly, it does not affect the reduced-form estimates or alter statistical significance of the IV estimates. This response shows that correcting this error does not alter the core findings or main message of the paper.

Suggested Citation

  • Gordon B. Dahl & Lance Lochner, 2017. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit: Reply," American Economic Review, American Economic Association, vol. 107(2), pages 629-631, February.
    • Handle: RePEc:aea:aecrev:v:107:y:2017:i:2:p:629-31
    Note: DOI: 10.1257/aer.20161329
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    References listed on IDEAS

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    1. Gordon B. Dahl & Lance Lochner, 2012. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit," American Economic Review, American Economic Association, vol. 102(5), pages 1927-1956, August.
    2. Samuel Lundstrom, 2017. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit: Comment," American Economic Review, American Economic Association, vol. 107(2), pages 623-628, February.
    3. Michael Baker & Kevin Milligan, 2010. "Evidence from Maternity Leave Expansions of the Impact of Maternal Care on Early Child Development," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
    4. Christopher J. Ruhm, 2004. "Parental Employment and Child Cognitive Development," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
    5. Herbst, Chris M., 2014. "Are Parental Welfare Work Requirements Good for Disadvantaged Children? Evidence from Age-of-Youngest-Child Exemptions," IZA Discussion Papers 8485, Institute of Labor Economics (IZA).
    6. Charles L. Baum II, 2003. "Does Early Maternal Employment Harm Child Development? An Analysis of the Potential Benefits of Leave Taking," Journal of Labor Economics, University of Chicago Press, vol. 21(2), pages 381-408, April.
    7. Hilary W. Hoynes & Ankur J. Patel, 2015. "Effective Policy for Reducing Inequality? The Earned Income Tax Credit and the Distribution of Income," NBER Working Papers 21340, National Bureau of Economic Research, Inc.
    8. Susanne James-Burdumy, 2005. "The Effect of Maternal Labor Force Participation on Child Development," Journal of Labor Economics, University of Chicago Press, vol. 23(1), pages 177-211, January.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Samuel Berlinski & Maria Marta Ferreyra & Luca Flabbi & Juan David Martin, 2020. "Child Care Markets, Parental Labor Supply, and Child Development," CHILD Working Papers Series 73 JEL Classification:, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    2. Lisa A. Gennetian & Greg Duncan & Nathan A. Fox & Katherine Magnuson & Sarah Halpern-Meekin & Kimberly G. Noble & Hirokazu Yoshikawa, 2022. "Unconditional Cash and Family Investments in Infants: Evidence from a Large-Scale Cash Transfer Experiment in the U.S," NBER Working Papers 30379, National Bureau of Economic Research, Inc.
    3. Nicardo S. McInnis & Katherine Michelmore & Natasha Pilkauskas, 2023. "The Intergenerational Transmission of Poverty and Public Assistance: Evidence from the Earned Income Tax Credit," NBER Working Papers 31429, National Bureau of Economic Research, Inc.
    4. Rendall, Michelle & Parasnis, Jaai & Paterson, Molly, 2022. "Gender, Income, and Numeracy Test Scores," CEPR Discussion Papers 16895, C.E.P.R. Discussion Papers.
    5. Martha J. Bailey & Hilary W. Hoynes & Maya Rossin-Slater & Reed Walker, 2020. "Is the Social Safety Net a Long-Term Investment? Large-Scale Evidence from the Food Stamps Program," NBER Working Papers 26942, National Bureau of Economic Research, Inc.
    6. Diego Daruich & Raquel Fernández, 2024. "Universal Basic Income: A Dynamic Assessment," American Economic Review, American Economic Association, vol. 114(1), pages 38-88, January.
    7. Jacob Bastian, 2020. "The EITC and Maternal Time Use: More Time Working and Less Time with Kids?," Working Papers 2020-077, Human Capital and Economic Opportunity Working Group.
    8. Barbara Broadway & Tessa LoRiggio & Chris Ryan & Anna Zhu, 2022. "Literature review on the impact of welfare policy design on children and youth," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 809-840, September.
    9. John Guyton & Kara Leibel & Day Manoli & Ankur Patel & Mark Payne & Brenda Schafer, 2023. "The Effects of EITC Correspondence Audits on Low-Income Earners," NBER Chapters, in: Tax Policy and the Economy, Volume 38, National Bureau of Economic Research, Inc.
    10. Francesco Agostinelli & Giuseppe Sorrenti, 2018. "Money vs. Time: Family Income, Maternal Labor Supply, and Child Development," Working Papers 2018-017, Human Capital and Economic Opportunity Working Group.
    11. Lauren E. Jones & Guangyi Wang & Tansel Yilmazer, 2022. "The long‐term effect of the Earned Income Tax Credit on women's physical and mental health," Health Economics, John Wiley & Sons, Ltd., vol. 31(6), pages 1067-1102, June.
    12. Ruffini, Krista, 2018. "Universal Access to Free School Meals and Student Achievement: Evidence from the Community Eligibility Provision," Institute for Research on Labor and Employment, Working Paper Series qt2c79q8fc, Institute of Industrial Relations, UC Berkeley.
    13. Aida Farmand & Owen Davis, 2021. "Who Does the Earned Income Tax Credit Benefit? A Monopsony View," SCEPA working paper series. 2021-02, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    14. Buckles, Kasey, 2017. "Maternal Socio-Economic Status and the Well-Being of the Next Generation(s)," IZA Discussion Papers 10714, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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