The Effects of the 2021 Child Tax Credit on Racial and Ethnic Inequalities in Well-Being

Bradley Hardy and Charles Hokayem

The ANNALS of the American Academy of Political and Social Science, 2023, vol. 710, issue 1, 157-171

Abstract: Evidence from the temporary expansion of the Child Tax Credit (CTC) in 2021 suggests it helped to reduce family poverty, lessen food hardship, and increase families’ financial expenditures on children across race and ethnicity. We review recent evidence on the impacts of the CTC on differences in well-being across race and ethnicity, including differences in access to the tax credit, how families used the tax credit, and the food insecurity and mental health circumstances of those families. We supplement our review of extant research with an analysis of racial income inequality using nationally representative data from the Current Population Survey: we find that the 2021 CTC expansion is associated with lowered Black–white and Hispanic–white income inequality in the bottom half of the income distribution, particularly at the 10th and 25th percentiles.

Keywords: racial and ethnic inequality; Child Tax Credit; after-tax income; redistribution (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/00027162241265791 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:anname:v:710:y:2023:i:1:p:157-171

DOI: 10.1177/00027162241265791

Access Statistics for this article

More articles in The ANNALS of the American Academy of Political and Social Science
Bibliographic data for series maintained by SAGE Publications ().