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Youngjin Stephanie Hong¹

¹Department of Population Health Sciences, University of Wisconsin-Madison, Madison, WI USA.

Population Research and Policy Review

|January 26, 2026

Summary

Government programs like the Earned Income Tax Credit (EITC) and Supplemental Nutrition Assistance Program (SNAP) boost child development. Combining EITC with greater SNAP purchasing power, or vice versa, significantly improves early math and reading skills.

Keywords:

EITC Early cognitive development Multiple program participation Poverty SNAP Safety net Working poor

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Area of Science:

Child Development
Economics
Public Policy

Background:

Poverty in early childhood and school years poses risks to cognitive development.
The U.S. government offers income support through programs like SNAP and EITC.
Many low-income families receive both SNAP and EITC benefits concurrently.

Purpose of the Study:

To investigate the interaction between SNAP and EITC benefits on children's early cognitive development.
To provide the first population-level evidence on the combined effects of these two major programs.

Main Methods:

Utilized a two-way (child and year) fixed effects model to address endogeneity.
Leveraged variations in EITC benefits based on child count and state policies.
Incorporated variations in SNAP purchasing power due to local food price fluctuations over time.

Main Results:

Found that EITC benefits enhance early math and reading skills when combined with increased SNAP purchasing power.
Observed that greater SNAP purchasing power also improves cognitive skills when coupled with EITC benefits.
Identified suggestive evidence for underlying mechanisms driving these complementary effects.

Conclusions:

EITC and SNAP benefits demonstrate complementary effects on early cognitive outcomes.
Enhancing the reach and generosity of both SNAP and EITC programs is crucial.
Policy interventions should consider the synergistic impact of combined income support programs.