Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300937 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17041
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
The 2021 Child Tax Credit (CTC) expansion increased government benefits to families, and especially to families with the lowest incomes. Economic theory predicts that this policy intervention would have led to a reduction in labor supply among adults in those families. Our review of available research suggests that employment within broadly defined demographic groups was not reduced by the 2021 CTC changes. However, we present evidence that employment was reduced among mothers with relatively low levels of education - the demographic group that was most affected by the CTC expansion. For the 2021 CTC expansion, theory and evidence were in the strongest alignment when the research design that produced the evidence was most focused on the demographic groups most likely to be affected by the expansion.
Subjects: 
employment
labor supply
cash transfers
maternal employment
child tax credit
JEL: 
H31
J08
Document Type: 
Working Paper

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