The Anti-Poverty, Targeting, and Labor Supply Effects of the Proposed Child Tax Credit Expansion

Corinth, Kevin; Meyer, Bruce D.; Stadnicki, Matthew; Wu, Derek

doi:10.2139/ssrn.3938983

Cited by 8 publications

(8 citation statements)

References 22 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The Child Tax Credit's Impact on Paid Labor Force Participation Some political commentators and policymakers have voiced concerns about the possible negative impact of the expanded CTC on paid labor force participation, particularly among low-income families (Corinth et al, 2021). However, most research has found no signi cant changes in employment (Bastian, 2022;Goldin et al, 2021;Hamilton et al, 2021;Roll, Hamilton, & Chun 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

“It Saved Us”: Parent Perspectives of the 2021 Expanded Child Tax Credit

Hamilton

Bellisle

Brugger

et al. 2023

Preprint

View full text Add to dashboard Cite

In early 2021, Congress expanded the existing Child Tax Credit (CTC), increasing the credit’s maximum value (up to $3,000 for school-age children and $3,600 for children under the age of six). Half of the credit was issued monthly to most families from July to December 2021. The temporary expansion was further made fully refundable, meaning that for one year, even very low-income families qualified. In this study, we draw on a novel, multi-wave probability-based panel survey of more than 1,000 CTC recipients to understand the credit’s impact on families. Using a mixed-methods approach that combines logistic regression and qualitative content analysis, we find that most respondents reported that the CTC made it easier for them to support their families, afford utility bills, and cover housing costs. Over one-third of respondents also stated that the CTC allowed them to pay for extracurricular activities for their children and save for their child’s future education, and spend more time with their children. In open-ended responses, parents describe that the CTC had a generally positive effect: it helped with bills/utilities, allowed families to save, helped with groceries/food, covered necessities for children, and reduced stress for parents. Conversely, some reported that it had no effects or made no difference. We also assess how participant demographics and political affiliation are associated with each theme.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

“It Saved Us”: Parent Perspectives of the 2021 Expanded Child Tax Credit

Hamilton

Bellisle

Brugger

et al. 2023

Preprint

View full text Add to dashboard Cite

show abstract

“…Such a focus is warranted, given that the principal aim of the program was to alleviate the pandemic's anticipated negative impact on families' financial security. Even Corinth et al (2021) and Ananat et al (2022) place their work on labor supply in an antipoverty context, with the principal conclusion of the former paper being that the expanded CTC's negative inducement to work would drastically reduce its antipoverty effects, and the principal conclusion of the latter paper being the opposite.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The expanded CTC takes place in the context of prior scrutiny of the impacts of earlier versions of the CTC (Goldin et al (2021)) and possible replacements (Goldin et al (2022); Corinth et al (2021)). In an early survey paper centered on improving efficiency and equity in the distribution of US child care benefits, Robins (1990) noted that few low-income families were eligible for taxbased subsidies under the 1980s version of the CTC.…”

Section: Literature Reviewmentioning

confidence: 99%

The Expanded Child Tax Credit: Impacts on Food Insufficiency Across Demographic Subgroups in the United States

Adrangi,

Barnes,

Berning

2023

The American Economist

View full text Add to dashboard Cite

We investigate the association of the Child Tax Credit (CTC) program with food insufficiency and related anxieties among families with incomes below $35000. Analyzing the US Census Bureau’s Household Pulse Survey data, our xtprobit specification and estimation reveals the disparate impact of the CTC across demographic and racial divides, a departure from previous work. Subgroup analyses reveal that the final two CTC installments disproportionately benefited Hispanic households and those earning under $25000/year while producing no significant decrease in food insufficiency for black households or those earning $25000–$35000/year. The study indicates that the expanded CTC’s reduction of low-income households’ food insufficiency persisted across the program’s duration. Thus, the expansion achieved its intended purpose by helping to buffer low-income families against the fallout of the disrupted pandemic economy—an important result to keep in mind as policy makers continue to consider modifications to the CTC that improve efficacy and equity.

show abstract

“…Some economists have cautioned that an expanded CTC could lead to reductions in parental labor force participation that would diminish the antipoverty effects associated with the policy. However, the magnitude of this possible effect has been debated, and different micro-simulation estimates of those possible effects make different assumptions (Corinth et al 2021; Goldin, Maag, and Michelmore 2021; NAS 2019). The existence of the actual monthly payments offers, however, an opportunity to empirically assess the policy’s actual effects, at least in the short run.…”

Section: The Federal Ctc During the Arp Expansionmentioning

confidence: 99%

The Child Tax Credit and Family Well-Being: An Overview of Reforms and Impacts

Collyer,

Curran,

Garfinkel

et al. 2023

The ANNALS of the American Academy of Political and Social Scie

View full text Add to dashboard Cite

The Child Tax Credit (CTC) has become an increasingly important element of the U.S. safety net. We discuss the structure of the CTC and its effects on childhood poverty and other indicators of well-being during its three distinct phases: prior to the 2021 American Rescue Plan (ARP) expansion, during the expansion, and after the expansion’s expiration. We also examine recent efforts to establish state-level CTCs. We show that, in 2020, roughly one in three children were ineligible for the full CTC because it is tied to family earnings. The temporary expansion under the ARP extended full CTC eligibility to nearly all of these children, thus moving more than three million children out of poverty in the expansion months. State-level analyses show how states could establish CTCs that reduce child poverty rates by half, either as a complement to an expanded federal CTC or in the absence of a continued federal expansion.

show abstract

The Anti-Poverty, Targeting, and Labor Supply Effects of the Proposed Child Tax Credit Expansion

Cited by 8 publications

References 22 publications

“It Saved Us”: Parent Perspectives of the 2021 Expanded Child Tax Credit

“It Saved Us”: Parent Perspectives of the 2021 Expanded Child Tax Credit

The Expanded Child Tax Credit: Impacts on Food Insufficiency Across Demographic Subgroups in the United States

The Child Tax Credit and Family Well-Being: An Overview of Reforms and Impacts

Contact Info

Product

Resources

About