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The long-term effects of childhood exposure to the earned income tax credit on health outcomes

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  • Braga, Breno
  • Blavin, Fredric
  • Gangopadhyaya, Anuj

Abstract

The Earned Income Tax Credit (EITC) is a central component of the U.S. safety net, benefiting about 25 million families. Using variation in the federal and state EITC, this paper evaluates the long-term impact of EITC exposure during childhood on the health of young adults. We find that an additional $100, or a 3% increase, in the average annual EITC exposure between birth and age 18 increases the likelihood of reporting very good or excellent health by 2.6% and decreases the likelihood of being obese by 4.1% between ages 22 and 27. The effects of EITC exposure are stronger for children raised in a single-parent household and for children with lower-educated parents.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:pubeco:v:190:y:2020:i:c:s0047272720301134
    DOI: 10.1016/j.jpubeco.2020.104249
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