RT Journal Article
SR Electronic
T1 Taxes and Adoptions from Foster Care: Evidence from The Federal Adoption Tax Credit
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 0618-9539R1
DO 10.3368/jhr.56.4.0618-9539R1
A1 Margaret E. Brehm
YR 2019
UL http://jhr.uwpress.org/content/early/2019/11/07/jhr.56.4.0618-9539R1.abstract
AB This paper uses administrative data on the universe of public adoptions to investigate whether the federal Adoption Tax Credit influences adoptions from foster care. Using a bunching analysis, I exploit a two-year change in 2010 and 2011 that made the credit refundable. I estimate there were about 2,400 more foster care adoptions, a 44 percent increase, nationwide in December 2011 than had the refundable credit not expired. Of this increase, I estimate an upper bound on the number of new adoptions of 1,790. Assuming all of the increase reflects re-timing, I estimate a pull-forward window of up to six months.