Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/231432
Authors: 
Agostinelli, Francesco
Sorrenti, Giuseppe
Year of Publication: 
2021
Series/Report no.: 
Working Paper No. 273
Abstract: 
This paper analyzes the relationship between work-promoting policies and child development. First, we provide new comprehensive evidence of the unintended consequences for child development of the Earned Income Tax Credit expansions during the 1990s in the United States. Second, our theory-driven empirical model reconciles this result by shedding light on the trade-off between the income effect (economic resources) and the substitution effect (time and quality of the parent-child interactions) on a child's cognitive and behavioral development. This money versus time trade-off is most pronounced for disadvantaged mothers. Overall, our results call for a policy debate on how to design targeted supplements for disadvantaged families to support working mothers and their children.
Subjects: 
Child development
family income
maternal labor supply
Kognitive Entwicklung
Verhaltensentwicklung
Arbeitsangebot
Mutter
Einkommen
Kinderbetreuung
Mindestlohn
JEL: 
H24
H31
I21
I38
J13
J22
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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