income-support policy / refundable tax credits
Established that EITC income modestly but causally improves children achievement and infant health, with larger effects for the most disadvantaged; debate concerns the per-dollar magnitude and the dominant mechanism.
Identified from instrumental-variables and difference-in-differences designs exploiting federal and state EITC expansions (Dahl & Lochner 2012; Hoynes 2015; Komro 2019; Braga 2020). Effects are modest per dollar but causal and concentrated among disadvantaged families; some short-term child-health outcomes show mixed or null results.
Dahl, G. B., & Lochner, L (2012). The impact of family income on child achievement: Evidence from the Earned Income Tax Credit. American Economic Review.
Observational
A $1,000 increase in income (instrumented by EITC) raised combined math and reading scores by about 6% of a standard deviation, with larger gains for disadvantaged children.
doi.org/10.1257/aer.102.5.1927Hoynes, H., Miller, D., & Simon, D (2015). Income, the Earned Income Tax Credit, and infant health. American Economic Journal: Economic Policy.
Observational
Increased EITC income reduced low birth weight and raised mean birth weight, with larger effects for Black mothers, partly via more prenatal care and less smoking.
Gains are modest per dollar; some short-term child-health outcomes show mixed or null results; the EITC bundles income with changes in maternal employment, prenatal care, and insurance, so income is not cleanly isolated; and effects may differ for unconditional or differently-timed transfers.
Komro, K. A., Markowitz, S., Livingston, M. D., & Wagenaar, A. C (2019). Effects of state-level Earned Income Tax Credit laws on birth outcomes by race and ethnicity. Health Equity.
Observational
Any state EITC was associated with better birth outcomes, with the largest effects in states with more generous credits and larger reductions in low birth weight among Black mothers.
doi.org/10.1089/heq.2018.0061Braga, B., Blavin, F., & Gangopadhyaya, A (2020). The long-term effects of childhood exposure to the Earned Income Tax Credit on health outcomes. Journal of Public Economics.
Observational
An additional $100 in average annual childhood EITC exposure raised the likelihood of very good/excellent health by 2.7 points and reduced obesity by 1.0 point in young adulthood.
doi.org/10.1016/j.jpubeco.2020.104249Kerris Cooper, Kitty Stewart (2021). Does household income affect children's outcomes? A systematic review of the evidence. Child Indicators Research.
Systematic review · N = 54 · children
Systematic review finding strong evidence that household income has a positive causal effect on children's outcomes including birth health, with EITC expansions specifically linked to improved birthweight and reduced pre-term births.
Bearing on this claim: [curated fold] Systematic review corroborating causal income effects and, specifically, EITC improvements to infant health.
doi.org/10.1007/s12187-020-09782-0Counter-authority (1). Studies an adversary may cite — surfaced deliberately so the grade is honest about its limits.
Hamad, R., & Rehkopf, D. H (2018). Estimating the short-term effects of the Earned Income Tax Credit on child health. American Journal of Epidemiology.
Observational
EITC refunds were not strongly associated with most short-term child-health outcomes (infection, metabolic/inflammatory markers, test scores), with only improved physician-reported overall health.
doi.org/10.1093/aje/kwy1795 supporting · 1 counter verified sources