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The Effects of the 2021 Child Tax Credit on Food Insecurity and Financial Hardship

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  • Nicholas Moellman
  • Cody N. Vaughn
  • James P. Ziliak

Abstract

We review the literature on the expansion of the Child Tax Credit in 2021, as it relates to food and financial hardship among households with children in the U.S. Extant scholarship consistently finds that receipt of the expanded tax credit is associated with an increase in food purchases and declines in food insufficiency and food insecurity. The effects of the tax credit expansion also vary by the socioeconomic characteristics of families. There are important differences, though, in effect sizes across studies, indicating that data sources, timeframe of analysis, and the way in which food hardship is measured all matter to the accurate estimation of effects. The effect of the credit on financial hardship is less conclusive, with the literature finding generally insignificant effects on measures such as difficulty paying rent or bills.

Suggested Citation

  • Nicholas Moellman & Cody N. Vaughn & James P. Ziliak, 2023. "The Effects of the 2021 Child Tax Credit on Food Insecurity and Financial Hardship," The ANNALS of the American Academy of Political and Social Science, , vol. 710(1), pages 90-107, November.
    • Handle: RePEc:sae:anname:v:710:y:2023:i:1:p:90-107
    DOI: 10.1177/00027162241261189
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    References listed on IDEAS

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    1. Craig Gundersen & Victor Oliveira, 2001. "The Food Stamp Program and Food Insufficiency," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 875-887.
    2. Vivekananda Das, 2023. "The effect of state Earned Income Tax Credit (EITC) eligibility on food insufficiency during the COVID-19 pandemic," Review of Economics of the Household, Springer, vol. 21(2), pages 485-518, June.
    3. Craig Gundersen & David Ribar, 2011. "Food Insecurity And Insufficiency At Low Levels Of Food Expenditures," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(4), pages 704-726, December.
    4. Laura Leete & Neil Bania, 2010. "The effect of income shocks on food insufficiency," Review of Economics of the Household, Springer, vol. 8(4), pages 505-526, December.
    5. Lucie Schmidt & Lara Shore-Sheppard & Tara Watson, 2016. "The Effect of Safety-Net Programs on Food Insecurity," Journal of Human Resources, University of Wisconsin Press, vol. 51(3), pages 589-614.
    6. Craig Gundersen & James P Ziliak, 2018. "Food Insecurity Research in the United States: Where We Have Been and Where We Need to Go," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 40(1), pages 119-135.
    7. Craig Gundersen & Brent Kreider & John V. Pepper, 2017. "Partial Identification Methods for Evaluating Food Assistance Programs: A Case Study of the Causal Impact of SNAP on Food Insecurity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(4), pages 875-893.
    8. Nicholas Moellman, 2020. "Healthcare and Hunger: Effects of the ACA Medicaid Expansions on Food Insecurity in America," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 168-186, June.
    9. Caroline Ratcliffe & Signe-Mary McKernan & Sisi Zhang, 2011. "How Much Does the Supplemental Nutrition Assistance Program Reduce Food Insecurity?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(4), pages 1082-1098.
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    Cited by:

    1. 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.
    2. 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.
    3. 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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