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Jacob Bastian @JacobBastian25
, 8 tweets, 3 min read Read on Twitter
Exciting news! My paper with @michelmorek on The Long-Term Impact of the Earned Income Tax Credit on Children’s Education and Employment Outcomes is now on the Journal of Labor Economics site:
doi.org/10.1086/697477

Brief summary:
We find that an additional $1,000 in EITC exposure when a child is 13–18 years old increases the likelihood of completing high school (1.3%), completing college (4.2%), and being employed as a young adult (1.0%) and earnings by 2.2%.
We find larger educ effects for minorities, kids of single-parents, kids with parents that did not go to college.

Economists already knew that the EITC improved health and test scores of young kids; we show that the positive effects of the program last through young adulthood
We used 4 decades of federal and state EITC variation and used panel data to see how exposure to the EITC throughout childhood affects education and employment outcomes when these children grow up and are in their 20s. The primary channel is increased family earnings.
Also, seeing my first accepted paper officially/finally in published form is really exciting!
(Ungated paper version @ my website)
Also:
Biggest effects found for kids from the poorest families, so the EITC increases intergenerational mobility and decreases intergenerational inequality.
Our research adds to this great tweet thread by @nomadj1s about the EITC

#eitc

A few people have asked/mentioned what this means for the overall cost of the EITC.
This is exactly my new project (to be released soon)!
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