Exposure to the Earned Income Tax Credit in early childhood and family wealth
K Michelmore, LM Lopoo - … : The Russell Sage Foundation Journal of …, 2021 - rsfjournal.org
Using the Panel Study of Income Dynamics and a cohort of individuals born between 2000
and 2011, we examine whether exposure to the Earned Income Tax Credit (EITC) in early
childhood (birth to age five) affects family wealth in middle childhood (ages six through
eleven). Results suggest that a $1,000 increase in EITC exposure in early childhood
increases overall family wealth in middle childhood by around 4 percent. We also observe
an increase in credit card debt (3 to 4 percent) and evidence that the EITC increases low …
and 2011, we examine whether exposure to the Earned Income Tax Credit (EITC) in early
childhood (birth to age five) affects family wealth in middle childhood (ages six through
eleven). Results suggest that a $1,000 increase in EITC exposure in early childhood
increases overall family wealth in middle childhood by around 4 percent. We also observe
an increase in credit card debt (3 to 4 percent) and evidence that the EITC increases low …