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- Title
The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit.
- Authors
Dahl, Gordon B; Lochner, Lance
- 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)
- Subjects
POOR children; ACADEMIC achievement; INCOME; EARNED income tax credit; NATIONAL Longitudinal Survey of Youth Labor Market Experience (U.S.); POVERTY research; REGRESSION analysis; ECONOMICS; EDUCATION
- Publication
American Economic Review, 2012, Vol 102, Issue 5, p1927
- ISSN
0002-8282
- Publication type
Article
- DOI
10.1257/aer.102.5.1927