Full Citation
Title: The Earned Income Tax Credit (EITC) and Informal Caregiving for Adults: Examining Effects on Time Allocation
Citation Type: Miscellaneous
Publication Year: 2023
ISBN:
ISSN:
DOI:
NSFID:
PMCID:
PMID:
Abstract: This study is the first to examine the effect of the Earned Income Tax Credit (EITC) on informal caregiving for adults, which could operate through the credit’s effects on labor supply and household income. Using a sample of unmarried mothers aged 25-59 and data from the American Time Use Survey (ATUS), I find that policy-induced increases in the generosity of average EITC benefits have differential effects on informal caregiving by recipient age. No effect is estimated for the youngest group of unmarried mothers (ages 25-34), who increase employment without reducing informal care for adults. In contrast, the oldest group of unmarried mothers (ages 45-59) responds to increases in EITC generosity by increasing their time spent and probability of informally caring for their adult family members while maintaining their labor supply. Unmarried mothers aged 35-44 also respond by increasing time spent on informal caregiving for adults, alongside intensive margin increases in labor supply. Results for other types of time use (home production, leisure, informal childcare), as well as probability of multigenerational co-residence, help explain these shifts. By going beyond outcomes for EITC recipients and their children, these results demonstrate that the effects of the EITC span generations and reach across households.
User Submitted?: No
Authors: Wiersma, Anna
Publisher:
Data Collections: IPUMS Time Use - ATUS
Topics: Aging and Retirement, Poverty and Welfare
Countries: