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Credit where it is due: Investigating pathways from earned income tax credit expansion to maternal mental health

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  • Anuj Gangopadhyaya
  • Fredric Blavin
  • Breno Braga
  • Jason Gates

Abstract

While earned income tax credit (EITC) expansions are typically associated with improvements in maternal mental health, little is known about the mechanisms through which the program affects this outcome. The EITC could primarily affect mental health through changes in family financial resources, changes in labor supply or changes in health insurance coverage of participants. We attempt to disentangle these mechanisms by assessing the effects of state and federal EITC expansion on mental health, employment, and health insurance by maternal marital status. We find that federal EITC expansions are associated with improved self‐reported mental health for all mothers and large positive effects on employment for unmarried mothers. State EITC expansions are associated with improvements in mental health for married mothers only and have no effect on employment for married or unmarried mothers. Overall and for most subgroups of mothers, we find little association between EITC expansions and changes in health insurance coverage. These findings suggest that while EITC expansions improved mental health for unmarried mothers through a combination of the credit and employment effects, for married mothers, improved mental health is driven through the direct credit alone.

Suggested Citation

  • Anuj Gangopadhyaya & Fredric Blavin & Breno Braga & Jason Gates, 2020. "Credit where it is due: Investigating pathways from earned income tax credit expansion to maternal mental health," Health Economics, John Wiley & Sons, Ltd., vol. 29(9), pages 975-991, September.
    • Handle: RePEc:wly:hlthec:v:29:y:2020:i:9:p:975-991
    DOI: 10.1002/hec.4034
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    References listed on IDEAS

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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Chris Sampson’s journal round-up for 21st September 2020
      by Chris Sampson in The Academic Health Economists' Blog on 2020-09-21 11:00:06

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    Cited by:

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    2. Brad R. Humphreys & Jane E. Ruseski, "undated". "Legalized Sports Betting and Mental Health," Working Papers 24-04, Department of Economics, West Virginia University.
    3. 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.
    4. 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).
    5. Mary Kopriva, 2023. "Universal Cash Transfer Impacts on Maternal and Infant Health," Working Papers 2023-02, University of Alaska Anchorage, Department of Economics.
    6. Cha, Eunho & Lee, Jiwan & Tao, Stacie, 2023. "Impact of the expanded child tax credit and its expiration on adult psychological well-being," Social Science & Medicine, Elsevier, vol. 332(C).
    7. Dow, William H. & Godøy, Anna & Lowenstein, Christopher & Reich, Michael, 2020. "Can Labor Market Policies Reduce Deaths of Despair?," Journal of Health Economics, Elsevier, vol. 74(C).
    8. 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).

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