Effects of the 2021 expanded Child Tax Credit on parents’ well-being and time use

Abstract

The American Rescue Plan Act of 2021 temporarily provided unconditional monthly cash benefits to most households with children to reduce child poverty during the COVID-19 pandemic. Using the American Time Use Survey and Well-Being Supplement, we examine the effects of the 2021 Child Tax Credit (CTC) expansion on well-being and time-use activities of households with children. We find that the CTC expansion was associated with improved parental well-being and health. The analysis also shows a significant increase in the time the parent spends with the child. The results are robust to several robustness checks and consistent with existing evidence.