TY - JOUR
T1 - The long-term impact of the earned income tax credit on children’s education and employment outcomes
AU - Bastian, Jacob
AU - Michelmore, Katherine
N1 - Funding Information:
ucation, through grant R305B110001 to the University of Michigan. The opinions expressed are those of the authors and do not represent views of the Institute or the US Department of Education. The collection of data used in this study was partly supported by the National Institutes of Health, under grant R01 HD069609, and the National Science Foundation, under award 1157698. Contact the corresponding author, Katherine Michelmore, at kmmichel@syr.edu. Information concerning access to the data used in this paper is available as supplementary material online. 1 See Nichols and Rothstein (2016) for a recent summary of the EITC.
Funding Information:
This research is supported by the Institute of Education Sciences, US Department of Education, through grant R305B110001 to the University of Michigan. The opinions expressed are those of the authors and do not represent views of the Institute or the US Department of Education. The collection of data used in this study was partly supported by the National Institutes of Health, under grant R01 HD069609, and the National Science Foundation, under award 1157698.
Funding Information:
This paper contains elements from an earlier version under a different title, “The Effect of Income on Educational Attainment: Evidence from State Earned Income Tax Credit Expansions.” We thank Martha Bailey, Charles Brown, Susan Dynarski, Ron Ehrenberg, Jim Hines, Hilary Hoynes, Brian Jacob, Lance Lochner, Michael Lovenheim, Doug Miller, Ross Milton, Mike Mueller-Smith, Kelly Musick, Sharon Sassler, Jeff Smith, Mel Stephens, and seminar participants at Cornell University, the University of Michigan, and the University of Wisconsin’s Institute for Research on Poverty for helpful advice and comments. Any remaining errors are our own. This research is supported by the Institute of Education Sciences, US Department of Ed-
Publisher Copyright:
© 2018 by The University of Chicago. All rights reserved.
PY - 2018/10/1
Y1 - 2018/10/1
N2 - 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.
AB - 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.
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U2 - 10.1086/697477
DO - 10.1086/697477
M3 - Article
AN - SCOPUS:85050830402
SN - 0734-306X
VL - 36
SP - 1127
EP - 1163
JO - Journal of Labor Economics
JF - Journal of Labor Economics
IS - 4
ER -