IDEAS home Printed from https://ideas.repec.org/a/eee/pubeco/v190y2020ics0047272720301134.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0047272720301134
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jpubeco.2020.104249?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Lauren E. Jones & Katherine Michelmore, 2018. "The Impact of the Earned Income Tax Credit on Household Finances," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 37(3), pages 521-545, June.
    2. Bruce D. Meyer & Dan T. Rosenbaum, 2001. "Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers," The Quarterly Journal of Economics, Oxford University Press, vol. 116(3), pages 1063-1114.
    3. 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.
    4. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, May.
    5. Almond, Douglas & Currie, Janet, 2011. "Human Capital Development before Age Five," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 15, pages 1315-1486, Elsevier.
    6. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    7. Austin Nichols & Jesse Rothstein, 2015. "The Earned Income Tax Credit," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 1, pages 137-218, National Bureau of Economic Research, Inc.
    8. Day Manoli & Nicholas Turner, 2018. "Cash-on-Hand and College Enrollment: Evidence from Population Tax Data and the Earned Income Tax Credit," American Economic Journal: Economic Policy, American Economic Association, vol. 10(2), pages 242-271, May.
    9. Hilary Hoynes & Doug Miller & David Simon, 2015. "Income, the Earned Income Tax Credit, and Infant Health," American Economic Journal: Economic Policy, American Economic Association, vol. 7(1), pages 172-211, February.
    10. 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.
    11. Laura R. Wherry & Sarah Miller & Robert Kaestner & Bruce D. Meyer, 2018. "Childhood Medicaid Coverage and Later-Life Health Care Utilization," The Review of Economics and Statistics, MIT Press, vol. 100(2), pages 287-302, May.
    12. Jens Ludwig & Douglas L. Miller, 2007. "Does Head Start Improve Children's Life Chances? Evidence from a Regression Discontinuity Design," The Quarterly Journal of Economics, Oxford University Press, vol. 122(1), pages 159-208.
    13. Jacob Bastian, 2020. "The Rise of Working Mothers and the 1975 Earned Income Tax Credit," American Economic Journal: Economic Policy, American Economic Association, vol. 12(3), pages 44-75, August.
    14. 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.
    15. Young Jo, 2018. "Does the earned income tax credit increase children's weight? The impact of policy‐driven income on childhood obesity," Health Economics, John Wiley & Sons, Ltd., vol. 27(7), pages 1089-1102, July.
    16. Reagan A. Baughman & Noelia Duchovny, 2016. "State Earned Income Tax Credits and the Production of Child Health: Insurance Coverage, Utilization, and Health Status," National Tax Journal, National Tax Association;National Tax Journal, vol. 69(1), pages 103-132, March.
    17. Henrik Kleven, 2019. "The EITC and the Extensive Margin: A Reappraisal," NBER Working Papers 26405, National Bureau of Economic Research, Inc.
    18. 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.
    19. Baughman, Reagan A., 2005. "Evaluating the Impact of the Earned Income Tax Credit on Health Insurance Coverage," National Tax Journal, National Tax Association;National Tax Journal, vol. 58(4), pages 665-684, December.
    20. Austin Nichols & Jesse Rothstein, 2015. "The Earned Income Tax Credit (EITC)," NBER Working Papers 21211, National Bureau of Economic Research, Inc.
    21. 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.
    22. Boudreaux, Michel H. & Golberstein, Ezra & McAlpine, Donna D., 2016. "The long-term impacts of Medicaid exposure in early childhood: Evidence from the program's origin," Journal of Health Economics, Elsevier, vol. 45(C), pages 161-175.
    23. Sarah Miller & Laura R. Wherry, 2019. "The Long-Term Effects of Early Life Medicaid Coverage," Journal of Human Resources, University of Wisconsin Press, vol. 54(3), pages 785-824.
    24. Jacob Bastian & Katherine Michelmore, 2018. "The Long-Term Impact of the Earned Income Tax Credit on Children’s Education and Employment Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 36(4), pages 1127-1163.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Diane Whitmore Schanzenbach & Michael R. Strain, 2021. "Employment Effects of the Earned Income Tax Credit: Taking the Long View," Tax Policy and the Economy, University of Chicago Press, vol. 35(1), pages 87-129.

    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. Braga, Breno & Blavin, Fredric & Gangopadhyaya, Anuj, 2019. "The Long-Term Effects of Childhood Exposure to the Earned Income Tax Credit on Health Outcomes," IZA Discussion Papers 12417, Institute of Labor Economics (IZA).
    2. 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.
    3. Gangopadhyaya, Anuj & Blavin, Fredric & Gates, Jason & Braga, Breno, 2019. "Credit Where It's Due: Investigating Pathways from EITC Expansion to Maternal Mental Health," IZA Discussion Papers 12233, Institute of Labor Economics (IZA).
    4. Hilary W. Hoynes & Diane Whitmore Schanzenbach, 2018. "Safety Nets Investments in Children," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 49(1 (Spring), pages 89-150.
    5. Otto Lenhart, 2019. "The effects of income on health: new evidence from the Earned Income Tax Credit," Review of Economics of the Household, Springer, vol. 17(2), pages 377-410, June.
    6. Bastian, Jacob E. & Jones, Maggie R., 2021. "Do EITC expansions pay for themselves? Effects on tax revenue and government transfers," Journal of Public Economics, Elsevier, vol. 196(C).
    7. Otto Lenhart, 2021. "Earned income tax credit and crime," Contemporary Economic Policy, Western Economic Association International, vol. 39(3), pages 589-607, July.
    8. Diane Whitmore Schanzenbach & Michael R. Strain, 2021. "Employment Effects of the Earned Income Tax Credit: Taking the Long View," Tax Policy and the Economy, University of Chicago Press, vol. 35(1), pages 87-129.
    9. Gabriella Conti & Giacomo Mason & Stavros Poupakis, 2019. "Developmental Origins of Health Inequality," Working Papers 2019-041, Human Capital and Economic Opportunity Working Group.
    10. 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.
    11. Gong, Jie & Lu, Yi & Xie, Huihua, 2020. "The average and distributional effects of teenage adversity on long-term health," Journal of Health Economics, Elsevier, vol. 71(C).
    12. 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.
    13. David Neumark & Katherine E. Williams, 2020. "Do State Earned Income Tax Credits Increase Participation in the Federal EITC?," NBER Working Papers 27626, National Bureau of Economic Research, Inc.
    14. Susan Averett & Yang Wang, 2013. "The Effects Of Earned Income Tax Credit Payment Expansion On Maternal Smoking," Health Economics, John Wiley & Sons, Ltd., vol. 22(11), pages 1344-1359, November.
    15. Florian Buhlmann & Benjamin Elsner & Andreas Peichl, 2018. "Tax refunds and income manipulation: evidence from the EITC," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(6), pages 1490-1518, December.
    16. Pac, Jessica & Nam, Jaehyun & Waldfogel, Jane & Wimer, Chris, 2017. "Young child poverty in the United States: Analyzing trends in poverty and the role of anti-poverty programs using the Supplemental Poverty Measure," Children and Youth Services Review, Elsevier, vol. 74(C), pages 35-49.
    17. John Guyton & Kara Leibel & Dayanand S. Manoli & Ankur Patel & Mark Payne & Brenda Schafer, 2018. "The Effects of EITC Correspondence Audits on Low-Income Earners," NBER Working Papers 24465, National Bureau of Economic Research, Inc.
    18. 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).
    19. 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.
    20. Bütikofer, Aline & Mølland, Eirin & Salvanes, Kjell G., 2018. "Childhood nutrition and labor market outcomes: Evidence from a school breakfast program," Journal of Public Economics, Elsevier, vol. 168(C), pages 62-80.

    More about this item

    Keywords

    EITC; Health outcomes; Children;
    All these keywords.

    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:pubeco:v:190:y:2020:i:c:s0047272720301134. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.elsevier.com/locate/inca/505578 .

    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/505578 .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.