Long-Term Health Effect of Earned Income Tax Credit

Ze Song
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Abstract

Using decades of variation in the federal and state Earned Income Tax Credit (EITC) and the Panel Study of Income Dynamics (PSID) dataset, I examine the impact of exposure to EITC expansions in utero and during childhood on health outcomes in adulthood. In order to overcome the confounding relationship between family income and health outcomes, this study uses the maximum EITC benefit as the key variable. Reduced-form estimates show that EITC expansions had a positive impact on self-reported health status and other health measurements. Specifically, a $1000 increase in the maximum EITC exposure from ages 13 to 18 corresponds with a 0.125 point increase in the reported health status during adulthood. In addition, being exposed to EITC expansions in utero increases reported health status by 0.043 point. Relative to the range of reported health of 1 to 5 and the standard deviation of 0.97, these are very small effects. Nonetheless, these health effects are consequential, associating with increases in both family income and maternal labor supply. Labor supply induced time substitution effect competes with the income enhancement, with different relative impacts at different age intervals, creating a “U-shaped" overall health consequence.
劳动所得税抵免的长期健康影响
利用数十年来联邦和州所得税抵免(EITC)和收入动态小组研究(PSID)数据集的变化,我研究了子宫和童年时期的EITC扩张对成年后健康结果的影响。为了克服家庭收入与健康结果之间的混淆关系,本研究使用最大EITC收益作为关键变量。简化形式估计表明,EITC的扩大对自我报告的健康状况和其他健康测量产生了积极影响。具体而言,13岁至18岁期间的最大EITC暴露增加1000美元,相当于成年期报告的健康状况增加0.125点。此外,在子宫内接触EITC扩展会使报告的健康状况增加0.043点。相对于1到5的健康报告范围和0.97的标准偏差,这些影响是非常小的。尽管如此,这些健康影响是间接的,与家庭收入和产妇劳动力供应的增加有关。劳动供给诱导的时间替代效应与收入增加相互竞争,在不同的年龄区间产生不同的相对影响,形成整体健康后果的“u”型。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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