Effects of the expanded Child Tax Credit on employment outcomes

Elizabeth Ananat, Benjamin Glasner, Christal Hamilton, Zachary Parolin and Clemente Pignatti

Journal of Public Economics, 2024, vol. 238, issue C

Abstract: The temporary 2021 expansion of the Child Tax Credit (CTC) was intended to reduce child poverty during the COVID-19 pandemic. The expansion’s elimination of an existing phase-in with earnings, however, potentially disincentivized labor supply, raising concerns that it would reduce parent employment. We empirically test for employment effects using difference-in-differences analyses with Current Population Survey data. Across many specifications and multiple sub-groups, we find very small, inconsistently signed, statistically insignificant impacts of the 2021 CTC on parental labor force participation and employment.

Keywords: Child Tax Credit; Employment; Labor supply elasticity (search for similar items in EconPapers)
JEL-codes: H53 I38 J22 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:238:y:2024:i:c:s004727272400104x

DOI: 10.1016/j.jpubeco.2024.105168

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