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The Effects of the 2021 Child Tax Credit on Child Developmental Outcomes

Author

Listed:
  • Anna Aizer
  • Adriana Lleras-Muney
  • Katherine Michelmore

Abstract

Child poverty fell to historic lows in 2021, in large part due to the temporary expansion of the Child Tax Credit (CTC). We consider the possible implications of this expansion on children’s short- and long-term development. To do so, we review the available short-run evidence from the 2021 expansion and the existing research evidence on the longer-run effects of similar income transfers in childhood on child health and human capital. We conclude that the CTC likely improved child health and well-being in the short and long run, with greater impacts for poor children and modest or nonexistent effects for nonpoor children. Moreover, the effects might be more substantial for younger children and for those in places with weaker safety nets.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:anname:v:710:y:2023:i:1:p:172-189
    DOI: 10.1177/00027162241264412
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    References listed on IDEAS

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    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.

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