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

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  • 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.

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  • 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
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    Cited by:

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    2. 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.
    3. Manasi Deshpande & Rebecca Dizon-Ross, 2023. "The (Lack of) Anticipatory Effects of the Social Safety Net on Human Capital Investment," NBER Working Papers 31512, National Bureau of Economic Research, Inc.
    4. Hema Shah & Lisa A. Gennetian, 2024. "Unconditional cash transfers for families with children in the U.S.: a scoping review," Review of Economics of the Household, Springer, vol. 22(2), pages 415-450, June.
    5. Hicks, Jeffrey & Simard-Duplain, Gaëlle & Green, David A. & Warburton, William, 2022. "The effect of reducing welfare access on employment, health, and children's long-run outcomes," CLEF Working Paper Series 51, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    6. McInnis, Nicardo, 2023. "Long-term health effects of childhood parental income," Social Science & Medicine, Elsevier, vol. 317(C).
    7. Taryn W. Morrissey, 2023. "The minimum wage and parent time use," Review of Economics of the Household, Springer, vol. 21(3), pages 1043-1062, September.
    8. Jacob Goldin & Elaine Maag & Katherine Michelmore, 2021. "Estimating the Net Fiscal Cost of a Child Tax Credit Expansion," NBER Chapters, in: Tax Policy and the Economy, Volume 36, pages 159-195, National Bureau of Economic Research, Inc.
    9. Gangopadhyaya, Anuj & Schiman, Jeffrey C., 2023. "Does subsidized public health insurance for parents improve children's human capital and close achievement gaps?," Economics of Education Review, Elsevier, vol. 93(C).
    10. Nicardo S. McInnis & Katherine Michelmore & Natasha Pilkauskas, 2023. "The Intergenerational Transmission of Poverty and Public Assistance: Evidence from the Earned Income Tax Credit," NBER Working Papers 31429, National Bureau of Economic Research, Inc.
    11. David Neumark, 2024. "The effects of minimum wages on (almost) everything? A review of recent evidence on health and related behaviors," LABOUR, CEIS, vol. 38(1), pages 1-65, March.
    12. Laura Tach & Elizabeth Day, 2023. "Better Together? Multiplier and Spillover Effects in Two-Generation Initiatives," The ANNALS of the American Academy of Political and Social Science, , vol. 706(1), pages 193-223, March.
    13. Taryn W. Morrissey, 2023. "The Earned Income Tax Credit and Short-Term Changes in Parents’ Time Investments in Children," Journal of Family and Economic Issues, Springer, vol. 44(2), pages 412-433, June.
    14. Yi Fan & Diana M. Weinhold, 2022. "Urban noise, sleep disruption and health," Applied Economics, Taylor & Francis Journals, vol. 54(50), pages 5782-5799, October.
    15. Noghanibehambari, Hamid & Engelman, Michal, 2022. "Social insurance programs and later-life mortality: Evidence from new deal relief spending," Journal of Health Economics, Elsevier, vol. 86(C).

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