The Short-Term Labor Supply Response to the Expanded Child Tax Credit

Brandon Enriquez, Damon Jones and Ernie Tedeschi

No 31110, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We estimate the extensive and intensive margin labor supply response to the monthly Child Tax Credit disbursed in 2021 as a part of the American Rescue Plan Act. Using Current Population Survey microdata, we compare labor supply outcomes among households who qualify for varying relative increases in household income, as a result of their income level and household size. We do not find strong evidence of a change in labor supply for families receiving the credit. The results are robust to alternative labor supply models, where households respond mainly to cash on hand or changes in the annual budget set.

JEL-codes: D63 H24 J22 (search for similar items in EconPapers)
Date: 2023-04
New Economics Papers: this item is included in nep-pbe and nep-pub
Note: CH LS PE
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published as Brandon Enriquez & Damon Jones & Ernie Tedeschi, 2023. "Short-Term Labor Supply Response to the Expanded Child Tax Credit," AEA Papers and Proceedings, vol 113, pages 401-405.

Downloads: (external link)
http://www.nber.org/papers/w31110.pdf (application/pdf)

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:nbr:nberwo:31110

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w31110

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().