Effects of Higher EITC Payments on Children’s Health, Quality of Home Environment, and Noncognitive Skills

Susan Averett () and Yang Wang

Public Finance Review, 2018, vol. 46, issue 4, 519-557

Abstract: In 1993, the benefit levels of the earned income tax credit (EITC) were changed significantly based on the number of children in the household. Exploiting this policy change and employing a difference-in-differences plus mother fixed effects framework, we find significantly improved home environment quality for children of unmarried mothers, regardless of their race/ethnicity, and lowered probabilities of having accidents and improved mother-rated health for children of married white mothers. Children of unmarried black and Hispanic mothers also had better mother-rated health. Our results provide new evidence of positive spillover effects of the 1993 EITC expansion and therefore have important policy implications.

Keywords: EITC; child health; quality of home environment; noncognitive skills (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:46:y:2018:i:4:p:519-557

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