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Author: Maxfield, Michelle
Resulting in 3 citations.
1. Maxfield, Michelle
Essays on Income, Social Policy, and Education
Ph.D. Dissertation, Department of Economics, Michigan State University, 2014
Cohort(s): Children of the NLSY79, NLSY79, NLSY79 Young Adult
Publisher: ProQuest Dissertations & Theses (PQDT)
Keyword(s): Child Care; Child Development; Earned Income Tax Credit (EITC); Educational Attainment; Geocoded Data; Maternal Employment; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading); State-Level Data/Policy; Welfare

Permission to reprint the abstract has not been received from the publisher.

Chapter 1: "The Effects of the Earned Income Tax Credit on Child Achievement and Long-Term Educational Attainment." The Earned Income Tax Credit (EITC) is a significant source of government assistance to low income families. Total outlay reached over $50 billion in 2008, with more than 97 percent of aid received by families with children (Internal Revenue Service 2011). Despite its size and pro-child goals, relatively little is known about how the EITC affects children directly. This study directly links EITC receipt throughout all ages of childhood to both contemporaneous achievement and long-run educational attainment. I take advantage of both Federal tax code changes and state EITC adoptions, which result in large variation in EITC generosity across state, time, and family size. Using the 1979 National Longitudinal Survey of Youth, I find that EITC expansions improve both contemporaneous and long-run educational outcomes of children. An increase in the maximum EITC of $1,000 (2008 dollars) in a given year significantly increases math achievement by about 0.072 nationally normed standard deviations. This change in EITC generosity during childhood also increases the probability of graduating high school or receiving a GED at age 19 by about 2.1 percentage points and increases the probability of completing one or more years of college by age 19 by about 1.4 percentage points. Estimated effects are larger for boys and minority children, and I find evidence that an expansion in the EITC is more effective at improving educational outcomes for children who are younger during the expansion.
Bibliography Citation
Maxfield, Michelle. Essays on Income, Social Policy, and Education. Ph.D. Dissertation, Department of Economics, Michigan State University, 2014.
2. Maxfield, Michelle
The Effects of the Earned Income Tax Credit on Child Achievement and Long-Term Educational Attainment
Working Paper, Michigan State University, November 14, 2013.
Also: https://www.msu.edu/~maxfiel7/20131114%20Maxfield%20EITC%20Child%20Education.pdf
Cohort(s): Children of the NLSY79, NLSY79, NLSY79 Young Adult
Publisher: Michigan State University
Keyword(s): Achievement; Children, Academic Development; Children, Poverty; Earned Income Tax Credit (EITC); Educational Attainment; Family Resources; Geocoded Data; Insurance; Maternal Employment; Peabody Individual Achievement Test (PIAT- Math); Welfare

Permission to reprint the abstract has not been received from the publisher.

The Earned Income Tax Credit (EITC) is a significant source of government assistance to low income families. Total outlay reached over $50 billion in 2008, with more than 97 percent of aid received by families with children (Internal Revenue Service 2011). Despite its size and pro-child goals, relatively little is known about how the EITC affects children directly. Until recently, studies focused only on indirect measures of child well-being such as poverty, parental labor supply, marriage, fertility, and consumption. This study directly links EITC receipt throughout all ages of childhood to both contemporaneous achievement and long-run educational attainment. I take advantage of both Federal tax code changes and state EITC adoptions, which result in large variation in EITC generosity across state, time, and family size. Using the 1979 National Longitudinal Survey of Youth, I find that EITC expansions improve both contemporaneous and long-run educational outcomes of children. An increase in the maximum EITC of $1,000 (2008 dollars) in a given year significantly increases math achievement by about 0.072 nationally normed standard deviations. This change in EITC generosity during childhood also increases the probability of graduating high school or receiving a GED at age 19 by about 2.1 percentage points and increases the probability of completing one or more years of college by age 19 by about 1.4 percentage points. Estimated effects are larger for boys and minority children, and I find evidence that an expansion in the EITC is more effective at improving educational outcomes for children who are younger during the expansion. An increase in the maximum EITC of $1,000 also results in other changes in the household, including an increase in net family income inclusive of EITC and welfare payments of about $888 and an increase in maternal labor force participation.
Bibliography Citation
Maxfield, Michelle. "The Effects of the Earned Income Tax Credit on Child Achievement and Long-Term Educational Attainment." Working Paper, Michigan State University, November 14, 2013.
3. Maxfield, Michelle
The Effects of the Earned Income Tax Credit On Child Development
Presented: Washington, DC, Association for Public Policy Analysis and Management (APPAM) Annual Fall Research Conference, November 7-9, 2013
Cohort(s): Children of the NLSY79, NLSY79
Publisher: Association for Public Policy Analysis and Management (APPAM)
Keyword(s): Child Care; Child Development; Earned Income Tax Credit (EITC); Insurance; Maternal Employment; Peabody Individual Achievement Test (PIAT- Math); Welfare

Permission to reprint the abstract has not been received from the publisher.

The Earned Income Tax Credit (EITC) has been a significant source of government aid to poor families since its start in 1975, with total aid reaching over $50 billion in 2008. Despite its size and pro-child goals, relatively little is known on how the EITC affects children directly. Until recently, studies have focused only on indirect measures of child well-being such as poverty, parental labor supply, marriage, fertility, and consumption. A few recent studies focus on the effects of the EITC on child and infant health, but other outcomes have not yet been explored. Without knowing the direct impact of the EITC on children, it is difficult to accurately assess the performance of the program. Taking advantage of tax changes in the 1990s which resulted in a large differential expansion in the EITC by number of children, I assess how an expansion in the EITC affects children’s cognitive, noncognitive, and health outcomes as well as the mechanisms behind these effects. Preliminary results using the National Longitudinal Survey of Youth suggest that home resources change significantly for children with single mothers – most notably an increase in maternal labor force participation, reduction in welfare receipt, a substitution away from maternal care to child care by distant relatives or non-relatives in a home setting, and a substitution of child insurance from Medicaid to private insurance. I find early evidence that the credit improves math scores for all children and decreases behavioral issues for children with married mothers. Timing and duration of effects are explored as well as differential effects by age of the child.
Bibliography Citation
Maxfield, Michelle. "The Effects of the Earned Income Tax Credit On Child Development." Presented: Washington, DC, Association for Public Policy Analysis and Management (APPAM) Annual Fall Research Conference, November 7-9, 2013.