Do Child Tax Benefits Affect the Well-being of Children? Evidence from Canadian Child Benefit Expansions

Kevin S. Milligan · Mark Stabile

383 citations0/0 files storedAmerican Economic Journal Economic Policy

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Poverty, Education, and Child Welfare Gender, Labor, and Family Dynamics Social Policies and Family

Abstract

We exploit changes in child benefits in Canada to study the impact of family income on child and family well-being. Using variation in child benefits across province, time, and family type, we study outcomes spanning test scores, mental health, physical health, and deprivation measures. The findings suggest that child benefit programs had significant positive effects on test scores, maternal health, and mental health, among other measures. We find strong and interesting differences in the effects of benefits by child sex: benefits have stronger effects on educational outcomes and physical health for boys, and on mental health outcomes for girls. (JEL I12, I31, I38, J13)

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References

2008Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects 2002How Money Matters for Young Children's Development: Parental Investment and Family Processes

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2009Healthy, Wealthy, and Wise: Socioeconomic Status, Poor Health in Childhood, and Human Capital Development 2014The Economics of Human Development and Social Mobility 2012The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit 2015Income, the Earned Income Tax Credit, and Infant Health 2010Human Capital Development Before Age Five 2017The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit: Reply 2016The Long-Run Impact of Cash Transfers to Poor Families 2014Giving Mom a Break: The Impact of Higher EITC Payments on Maternal Health

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