American Economic Review· 2012Q1
The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit
- 833citations
- Q1SCImago
- 2012year
Short summary
A $1,000 increase in family income, driven by the Earned Income Tax Credit, raised children's combined math and reading test scores by 6% of a standard deviation in the short run.
AI-generated from the title and abstract; the full text is not read.
Key points
- The Earned Income Tax Credit (EITC) caused significant, nonlinear increases in family income.
- A $1,000 increase in family income led to a 6% standard deviation rise in combined math and reading test scores.
- Gains in test scores were more pronounced for children from disadvantaged backgrounds.
- Results were robust across various alternative specifications.
AI-generated from the title and abstract; the full text is not read.
Abstract
Using an instrumental variables strategy, we estimate the causal effect of income on children's math and reading achievement. Our identification derives from the large, nonlinear changes in the Earned Income Tax Credit. The largest of these changes increased family income by as much as 20 percent, or approximately $2,100, between 1993 and 1997. Our baseline estimates imply that a $1,000 increase in income raises combined math and reading test scores by 6 percent of a standard deviation in the short run. Test gains are larger for children from disadvantaged families and robust to a variety of alternative specifications. (JEL H24, H31, I21, I38, J13)
The authors' abstract, as published at the source. American Economic Review, 2012 · DOI ↗
Continue with a free account
Ask the paper: 3 free questions a day about this paper; save it, get its citation, new summaries every day for your field. Takeaways are Premium.
Continue free on the webSign in with Google or Apple; no card needed. You come back to this paper.
On your phone:
Field: Gender Studies
Gender StudiesSocial Sciences