RT Journal Article
SR Electronic
T1 The Intergenerational Transmission of Poverty and Public Assistance
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 0422-12241R2
DO 10.3368/jhr.0422-12241R2
A1 McInnis, Nicardo
A1 Michelmore, Katherine
A1 Pilkauskas, Natasha
YR 2024
UL http://jhr.uwpress.org/content/early/2024/03/01/jhr.0422-12241R2.abstract
AB This paper examines the intergenerational effects of the Earned Income Tax Credit (EITC) on poverty and public assistance use. Using PSID data, we find that increased exposure to the EITC in childhood reduces the likelihood of being in poverty (<100% of poverty) or near poverty (<200% of poverty) by about 5 percentage points. We also find evidence of reduced public assistance use for some populations. These findings build on a growing literature that considers the intergenerational impacts of public policy and suggests that the economic benefits of policies in one generation may have long-term effects on the next generation.