Affiliation:
1. Department of Economics, Lafayette College, Easton, PA, USA
2. IZA, Bonn, Germany
Abstract
In 1993, the benefit levels of the earned income tax credit (EITC) were changed significantly based on the number of children in the household. Exploiting this policy change and employing a difference-in-differences plus mother fixed effects framework, we find significantly improved home environment quality for children of unmarried mothers, regardless of their race/ethnicity, and lowered probabilities of having accidents and improved mother-rated health for children of married white mothers. Children of unmarried black and Hispanic mothers also had better mother-rated health. Our results provide new evidence of positive spillover effects of the 1993 EITC expansion and therefore have important policy implications.
Subject
Public Administration,Economics and Econometrics,Finance
Cited by
38 articles.
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