The Long-Term Effects of Childhood Exposure to the Earned Income Tax Credit on Health Outcomes

44 Pages Posted: 25 Jun 2019

See all articles by Breno Braga

Breno Braga

The Urban Institute; IZA

Fredric Blavin

The Urban Institute

Anuj Gangopadhyaya

Urban Institute

Abstract

The Earned Income Tax Credit (EITC) is a central component of the U.S. safety net, benefiting about 27 million families. Using variation in the federal and state EITC, this paper evaluates the long-term impact of EITC exposure during childhood on the health of young adults. We find that an additional $100 in the average annual EITC exposure between ages 0 and 18 increases the likelihood of reporting very good or excellent health by 2.7 percentage points and decreases the likelihood of being obese by 1.0 percentage point between ages 22 and 27. Direct program transfers, increases in pre-tax family earnings, and increases in health insurance coverage are channels through which the EITC improves health.

Keywords: children, health outcomes, EITC

JEL Classification: H24, I12, I14

Suggested Citation

Braga, Breno and Blavin, Fredric and Gangopadhyaya, Anuj, The Long-Term Effects of Childhood Exposure to the Earned Income Tax Credit on Health Outcomes. IZA Discussion Paper No. 12417, Available at SSRN: https://ssrn.com/abstract=3408315 or http://dx.doi.org/10.2139/ssrn.3408315

Breno Braga (Contact Author)

The Urban Institute ( email )

2100 M Street, NW
Washington, DC 20037
United States

IZA ( email )

Fredric Blavin

The Urban Institute ( email )

2100 M Street, N.W.
Washington, DC 20037
United States

Anuj Gangopadhyaya

Urban Institute ( email )

2100 M Street, NW
Washington, DC 20037
United States

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