Data and Code for: The Short-Term Labor Supply Response to the Expanded Child Tax Credit

Principal Investigator(s): View help for Principal Investigator(s) Damon Jones, University of Chicago; Brandon Enriquez, Massachusetts Institute of Technology; Ernie Tedeschi

Version: View help for Version V1

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Project Description

Summary: We estimate the extensive and intensive margin labor supply response to the monthly Child Tax Credit disbursed in 2021 as a part of the American Rescue Plan Act. Using Current Population Survey microdata, we compare labor supply outcomes among households who qualify for varying relative increases in household income, as a result of their income level and household size. We do not find strong evidence of a change in labor supply for families receiving the credit. The results are robust to alternative labor supply models, where households respond mainly to cash on hand or changes in the annual budget set.

Scope of Project

Subject Terms: Inequalty; Income Transfers; Labor Supply

JEL Classification:
      D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement
      H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
      J22 Time Allocation and Labor Supply

Geographic Coverage: United States of America

Universe: People age 16 and older, United States

Data Type(s): survey data

Methodology

Data Source: IPUMS CPS ASEC supplement, 2018 to 2022,
NBER CPS Basic Monthly Data, 2018 to 2022

Unit(s) of Observation: Individuals

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Published Versions

V1 [2023-06-05]

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DDI 2.5

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