Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/62587 
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dc.contributor.authorDahl, Gordon B.en
dc.contributor.authorLochner, Lanceen
dc.date.accessioned2012-06-19-
dc.date.accessioned2012-09-14T11:08:18Z-
dc.date.available2012-09-14T11:08:18Z-
dc.date.issued2012-
dc.identifier.urihttp://hdl.handle.net/10419/62587-
dc.description.abstractPast estimates of the effect of family income on child development have often been plagued by endogeneity and measurement error. In this paper, we use an instrumental variables strategy to estimate the causal effect of income on children's math and reading achievement. Our identification derives from the large, non-linear changes in the Earned Income Tax Credit (EITC) over the last two decades. The largest of these changes increased family income by as much as 20%, or approximately $2,100, between 1993 and 1997. Using a panel of roughly 4,500 children matched to their mothers from National Longitudinal Survey of Youth datasets allows us to address problems associated with unobserved heterogeneity, endogenous transitory income shocks, and measurement error in income. Our baseline estimates imply that a $1,000 increase in income raises combined math and reading test scores by 6% of a standard deviation in the short-run. Test gains are larger for children from disadvantaged families and are robust to a variety of alternative specifications.en
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x6613en
dc.subject.jelI2en
dc.subject.jelI3en
dc.subject.ddc330en
dc.subject.keywordfamily incomeen
dc.subject.keywordpovertyen
dc.subject.keywordeducational achievementen
dc.subject.stwFamilieen
dc.subject.stwHaushaltseinkommenen
dc.subject.stwKinderen
dc.subject.stwSteuerbegünstigungen
dc.subject.stwBildungsverhaltenen
dc.subject.stwBildungsniveauen
dc.subject.stwUSAen
dc.titleThe impact of family income on child achievement: Evidence from the earned income tax credit-
dc.typeWorking Paperen
dc.identifier.ppn717908836en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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