The Long-Term Impact of the Earned Income Tax Credit on Children's Education and Employment Outcomes

• 成果类型: Article
• 署名作者: Bastian, Jacob; Michelmore, Katherine
• 署名单位: University of Michigan System; University of Michigan; Syracuse University
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/697477
• 发表日期: 2018
• 页码: 1127-1163
• 关键词: family income; head-start; achievement evidence; college enrollment; project star; HEALTH; PARTICIPATION; marriage; matter; EITC

摘要

Using 4 decades of variation in the federal and state Earned Income Tax Credit (EITC), we estimate the impact of exposure to EITC expansions in childhood on education and employment outcomes in adulthood. Reduced-form results suggest that an additional $1,000 in EITC exposure when a child is 13-18 years old increases the likelihood of completing high school (1.3%), completing college (4.2%), and being employed as a young adult (1.0%) and earnings by 2.2%. Our analysis reveals that the primary channel through which the EITC improves these outcomes is increases in pretax family earnings.