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Published on: March 1, 2019
Effects of the 2021 expanded Child Tax Credit on parents' well-being and time use
1University of Reunion Island, Department of Economics (CEMOI), 15 avenue René Cassin - CS 92003. 97744 Saint-Denis Cedex 9, France.
Abstract:
The American Rescue Plan Act of 2021 temporarily provided unconditional monthly cash benefits to most households with children to reduce child poverty during the COVID-19 pandemic. Using the American Time Use Survey and Well-Being Supplement, we examine the effects of the 2021 Child Tax Credit (CTC) expansion on well-being and time-use activities of households with children. We find that the CTC expansion was associated with improved parental well-being and health. The analysis also shows a significant increase in the time the parent spends with the child. The results are robust to several robustness checks and consistent with existing evidence.
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