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The Effects of the 2021 Child Tax Credit on Parents’ Psychological Well-Being

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  • Lisa A. Gennetian
  • Anna Gassman-Pines

Abstract

Improving the psychological well-being of parents who received the 2021 expanded Child Tax Credit (CTC) was not an explicit focus of that benefit program, but psychological effects may have been felt, given the positive income shocks generated by the credit. This article reviews academic research that is available on the CTC’s effect on parents’ psychological well-being. Some studies have found that the CTC led to reductions in reported levels of clinical depression and anxiety among parents and in their subclinical depressive and anxiety symptoms. Other studies that have used similar methods find no effects on those outcomes. Importantly, the evidence does not point to the CTC worsening psychological well-being. Overall, evidence on this topic is thin and mixed, even when comparable studies on the impact of income support are also included in the review. We argue that building a more conclusive evidence base would require tighter alignment of policy objectives to measurement approaches.

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  • Lisa A. Gennetian & Anna Gassman-Pines, 2023. "The Effects of the 2021 Child Tax Credit on Parents’ Psychological Well-Being," The ANNALS of the American Academy of Political and Social Science, , vol. 710(1), pages 124-140, November.
    • Handle: RePEc:sae:anname:v:710:y:2023:i:1:p:124-140
    DOI: 10.1177/00027162241265788
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    Cited by:

    1. Elizabeth Ananat & Irwin Garfinkel, 2023. "The Potential Long-Run Impact of a Permanently Expanded Child Tax Credit," The ANNALS of the American Academy of Political and Social Science, , vol. 710(1), pages 192-208, November.
    2. Anna Aizer & Adriana Lleras-Muney & Katherine Michelmore, 2023. "The Effects of the 2021 Child Tax Credit on Child Developmental Outcomes," The ANNALS of the American Academy of Political and Social Science, , vol. 710(1), pages 172-189, November.
    3. Bradley Hardy & Charles Hokayem, 2023. "The Effects of the 2021 Child Tax Credit on Racial and Ethnic Inequalities in Well-Being," The ANNALS of the American Academy of Political and Social Science, , vol. 710(1), pages 157-171, November.
    4. Pamela Herd & Donald Moynihan, 2023. "Implementing the Expanded Child Tax Credit: What Worked, What Didn’t, and How to Move Forward," The ANNALS of the American Academy of Political and Social Science, , vol. 710(1), pages 58-74, November.

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