IDEAS home Printed from https://ideas.repec.org/a/eee/ehbiol/v59y2025ics1570677x25000668.html

Effects of the 2021 expanded Child Tax Credit on parents’ well-being and time use

Author

Listed:
  • Lebihan, Laetitia

Abstract

The American Rescue Plan Act of 2021 temporarily provided unconditional monthly cash benefits to most households with children to reduce child poverty during the COVID-19 pandemic. Using the American Time Use Survey and Well-Being Supplement, we examine the effects of the 2021 Child Tax Credit (CTC) expansion on well-being and time-use activities of households with children. We find that the CTC expansion was associated with improved parental well-being and health. The analysis also shows a significant increase in the time the parent spends with the child. The results are robust to several robustness checks and consistent with existing evidence.

Suggested Citation

  • Lebihan, Laetitia, 2025. "Effects of the 2021 expanded Child Tax Credit on parents’ well-being and time use," Economics & Human Biology, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:ehbiol:v:59:y:2025:i:c:s1570677x25000668
    DOI: 10.1016/j.ehb.2025.101533
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1570677X25000668
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ehb.2025.101533?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Jake Schild & Sophie M. Collyer & Thesia Garner & Neeraj Kaushal & Jiwan Lee & Jane Waldfogel & Christopher T. Wimer, 2023. "Effects of the Expanded Child Tax Credit on Household Spending: Estimates Based on U.S. Consumer Expenditure Survey Data," NBER Working Papers 31412, National Bureau of Economic Research, Inc.
    2. Laetitia Lebihan, 2023. "The impact of a mandatory universal drug insurance program on health behaviors and outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 32(9), pages 2006-2046, September.
    3. Jessica Pac & Lawrence M. Berger, 2024. "Quasi‐experimental evidence on the employment effects of the 2021 fully refundable monthly child tax credit," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 43(1), pages 192-213, January.
    4. Janet Currie & Jonathan Gruber, 1996. "Health Insurance Eligibility, Utilization of Medical Care, and Child Health," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 431-466.
    5. 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.
    6. Dolan, Paul & Peasgood, Tessa & White, Mathew, 2008. "Do we really know what makes us happy A review of the economic literature on the factors associated with subjective well-being," Journal of Economic Psychology, Elsevier, vol. 29(1), pages 94-122, February.
    7. Natasha V. Pilkauskas & Katherine Michelmore & Nicole Kovski & H. Luke Shaefer, 2024. "The expanded Child Tax Credit and economic wellbeing of low-income families," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(4), pages 1-35, December.
    8. Katherine Michelmore & Natasha V. Pilkauskas, 2023. "The 2021 Child Tax Credit: Who Received It and How Did They Spend It?," AEA Papers and Proceedings, American Economic Association, vol. 113, pages 413-419, May.
    9. Anuj Gangopadhyaya & Fredric Blavin & Breno Braga & Jason Gates, 2020. "Credit where it is due: Investigating pathways from earned income tax credit expansion to maternal mental health," Health Economics, John Wiley & Sons, Ltd., vol. 29(9), pages 975-991, September.
    10. Andrew E Clark & Orla Doyle & Elena Stancanelli, 2020. "The Impact of Terrorism on Individual Well-Being: Evidence from the Boston Marathon Bombing," The Economic Journal, Royal Economic Society, vol. 130(631), pages 2065-2104.
    11. William N. Evans & Craig L. Garthwaite, 2014. "Giving Mom a Break: The Impact of Higher EITC Payments on Maternal Health," American Economic Journal: Economic Policy, American Economic Association, vol. 6(2), pages 258-290, May.
    12. Boyd-Swan, Casey & Herbst, Chris M. & Ifcher, John & Zarghamee, Homa, 2016. "The earned income tax credit, mental health, and happiness," Journal of Economic Behavior & Organization, Elsevier, vol. 126(PA), pages 18-38.
    13. Clemente Pignatti & Zachary Parolin, 2024. "The effects of an unconditional cash transfer on parents' mental health in the United States," Health Economics, John Wiley & Sons, Ltd., vol. 33(10), pages 2253-2287, October.
    14. Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007. "Experimental Analysis of Neighborhood Effects," Econometrica, Econometric Society, vol. 75(1), pages 83-119, January.
    15. Cha, Eunho & Lee, Jiwan & Tao, Stacie, 2023. "Impact of the expanded child tax credit and its expiration on adult psychological well-being," Social Science & Medicine, Elsevier, vol. 332(C).
    16. Hilary Hoynes & Diane Whitmore Schanzenbach & Douglas Almond, 2016. "Long-Run Impacts of Childhood Access to the Safety Net," American Economic Review, American Economic Association, vol. 106(4), pages 903-934, April.
    17. Kevin Milligan & Mark Stabile, 2011. "Do Child Tax Benefits Affect the Well-Being of Children? Evidence from Canadian Child Benefit Expansions," American Economic Journal: Economic Policy, American Economic Association, vol. 3(3), pages 175-205, August.
    18. Ananat, Elizabeth & Glasner, Benjamin & Hamilton, Christal & Parolin, Zachary & Pignatti, Clemente, 2024. "Effects of the expanded Child Tax Credit on employment outcomes," Journal of Public Economics, Elsevier, vol. 238(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laetitia Lebihan, 2025. "Effects of the 2021 expanded Child Tax Credit on parents’ well-being and time use," Post-Print hal-05509374, HAL.
    2. Braga, Breno & Blavin, Fredric & Gangopadhyaya, Anuj, 2020. "The long-term effects of childhood exposure to the earned income tax credit on health outcomes," Journal of Public Economics, Elsevier, vol. 190(C).
    3. Katherine Michelmore, 2025. "Tax credits and child outcomes: lessons from the United States, the United Kingdom and Canada," Fiscal Studies, John Wiley & Sons, vol. 46(1), pages 65-90, March.
    4. Gangopadhyaya, Anuj & Schiman, Jeffrey C., 2023. "Does subsidized public health insurance for parents improve children's human capital and close achievement gaps?," Economics of Education Review, Elsevier, vol. 93(C).
    5. Lucie Schmidt & Lara Shore‐Sheppard & Tara Watson, 2023. "The Effect of Safety Net Generosity on Maternal Mental Health and Risky Health Behaviors," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(3), pages 706-736, June.
    6. Youngjin Stephanie Hong, 2026. "Do Larger Earned Income Tax Credit and Supplemental Nutrition Assistance Program Benefits Create Complementary Effects on Child Development?," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 45(1), pages 1-33, February.
    7. Cha, Eunho & Lee, Jiwan & Tao, Stacie, 2023. "Impact of the expanded child tax credit and its expiration on adult psychological well-being," Social Science & Medicine, Elsevier, vol. 332(C).
    8. Clemente Pignatti & Zachary Parolin, 2024. "The effects of an unconditional cash transfer on parents' mental health in the United States," Health Economics, John Wiley & Sons, Ltd., vol. 33(10), pages 2253-2287, October.
    9. Hicks, Jeffrey & Simard-Duplain, Gaëlle & Green, David A. & Warburton, William, 2022. "The effect of reducing welfare access on employment, health, and children's long-run outcomes," CLEF Working Paper Series 51, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    10. Jajtner, Katie & Wang, Yang, 2025. "The effects of earned income tax credits on intergenerational health mobility in the United States," Journal of Health Economics, Elsevier, vol. 103(C).
    11. Mari, Gabriele, 2023. "Less for more? Cuts to child benefits, family adjustments, and long-run child outcomes in larger families," SocArXiv e3n82, Center for Open Science.
    12. Aimee Chabot & Maximilian Hell, 2023. "Using Technology and Iterative Research to Strengthen the Social Safety Net," The ANNALS of the American Academy of Political and Social Science, , vol. 706(1), pages 256-275, March.
    13. Dow, William H. & Godøy, Anna & Lowenstein, Christopher & Reich, Michael, 2020. "Can Labor Market Policies Reduce Deaths of Despair?," Journal of Health Economics, Elsevier, vol. 74(C).
    14. Douglas Almond & Janet Currie & Valentina Duque, 2018. "Childhood Circumstances and Adult Outcomes: Act II," Journal of Economic Literature, American Economic Association, vol. 56(4), pages 1360-1446, December.
    15. Katherine A. Magnuson & Greg J. Duncan & Hirokazu Yoshikawa & Paul Y. Yoo & Sangdo Han & Lisa A. Gennetian & Sarah Halpern-Meekin & Nathan A. Fox & Kimberly G. Noble, 2025. "Effects of unconditional cash transfers on family processes and wellbeing among mothers with low incomes," Nature Communications, Nature, vol. 16(1), pages 1-17, December.
    16. Kerris Cooper & Kitty Stewart, 2021. "Does Household Income Affect children’s Outcomes? A Systematic Review of the Evidence," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 14(3), pages 981-1005, June.
    17. Pignatti, Clemente & Parolin, Zachary, 2023. "The Effects of an Unconditional Cash Transfer on Mental Health in the United States," IZA Discussion Papers 16237, IZA Network @ LISER.
    18. Simpson, Julija & Albani, Viviana & Bell, Zoe & Bambra, Clare & Brown, Heather, 2021. "Effects of social security policy reforms on mental health and inequalities: A systematic review of observational studies in high-income countries," Social Science & Medicine, Elsevier, vol. 272(C).
    19. Cooper, Kerris & Stewart, Kitty, 2020. "Does household income affect children’s outcomes? A systematic review of the evidence," LSE Research Online Documents on Economics 107029, London School of Economics and Political Science, LSE Library.
    20. Pedro Carneiro & Sarah Cattan & Henrique Neves, 2025. "Theoretical and empirical perspectives on the link between poverty, parenting and children's outcomes," Fiscal Studies, John Wiley & Sons, vol. 46(1), pages 9-35, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ehbiol:v:59:y:2025:i:c:s1570677x25000668. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622964 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.