Do Cash Transfer Programs Improve Infant Health: Evidence from the 1993 Expansion of the Earned Income Tax Credit

Kevin Baker

1993 · 36 citations · 2 references

Concepts

Abstract

In this paper I examine the effect of the Earned Income Tax Credit (EITC) on birth outcomes by exploiting the 1993 expansion, which increased benefits disproportionately for families with two or more children. Using both difference-in-difference and difference-in-difference-in-difference approaches, I find that the expansion had small positive and statistically significant effects on birth weight, and that the expansion reduced the incidence of low birth weight. I also examine whether the increase in income as a result of the expansion led to greater investment into health inputs by testing whether the expansion increased the number of prenatal visits among eligible mothers. I find the expansion had no effect on prenatal care decisions.

References

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