The Health Effects of Expanding the Earned Income Tax Credit: Results from New York City

Citation:

Courtin E, Aloisi K, Miller C, Allen HL, Katz LF, Muennig P. The Health Effects of Expanding the Earned Income Tax Credit: Results from New York City. Health Affairs [Internet]. 2020;39 (7) :1149-56.

Abstract:

Antipoverty policies may hold promise as tools to improve health and reduce mortality rates among low-income Americans. We examined the health effects of the New York City Paycheck Plus randomized controlled trial. Paycheck Plus tests the impact of a potential fourfold increase in the Earned Income Tax Credit for low-income Americans without dependent children. Starting in 2015, Paycheck Plus offered 5,968 study participants a credit of up to $2,000 at tax time (treatment) or the standard credit of about $500 (control). Health-related quality of life and other outcomes for a representative subset of these participants (n = 3,289) were compared to those of a control group thirty-two months after randomization. The intervention had a modest positive effect on employment and earnings, particularly among women. It had no effect on health-related quality of life for the overall sample, but women realized significant improvements.

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