Income, the Earned Income Tax Credit, and Infant Health Hilary W. Hoynes (Affiliate in Economics), Douglas L. Miller (Affiliate in Economics), and David Simon (Graduate Student in Economics)
Is there a positive health impact to families receiving the
Earned Income Tax Credit, a central piece in the U.S. safety net
for families with children? Researchers conclude that the
sizeable increase in income for eligible families significantly
improved birth outcomes for both whites and African Americans,
with larger impacts for births to African American mothers.
Summary:
Using tax-reform induced variation in the federal EITC and the
presence and generosity of state EITC’s, researchers examine the
impact of the credit on infant health outcomes. They find that
increased EITC income reduces the incidence of low birth weight
and increases mean birth weight. For single low education (<=
12 years) mothers, a policy-induced treatment on the treated
increase of $1000 in EITC income is associated with 7% reduction
in the low birth weight rate. These impacts are evident with
difference-in-difference models and event study analyses.
