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dc.contributor.authorDahl, Gordon B.en_US
dc.contributor.authorLochner, Lanceen_US
dc.date.accessioned2012-06-19en_US
dc.date.accessioned2012-09-14T11:08:18Z-
dc.date.available2012-09-14T11:08:18Z-
dc.date.issued2012en_US
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_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6613en_US
dc.subject.jelI2en_US
dc.subject.jelI3en_US
dc.subject.ddc330en_US
dc.subject.keywordfamily incomeen_US
dc.subject.keywordpovertyen_US
dc.subject.keywordeducational achievementen_US
dc.subject.stwFamilieen_US
dc.subject.stwHaushaltseinkommenen_US
dc.subject.stwKinderen_US
dc.subject.stwSteuerbeg├╝nstigungen_US
dc.subject.stwBildungsverhaltenen_US
dc.subject.stwBildungsniveauen_US
dc.subject.stwUSAen_US
dc.titleThe impact of family income on child achievement: Evidence from the earned income tax crediten_US
dc.typeWorking Paperen_US
dc.identifier.ppn717908836en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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