The earned income tax credit and food insecurity

Lenhart, Otto (2023) The earned income tax credit and food insecurity. American Journal of Agricultural Economics, 105 (5). pp. 1543-1570. ISSN 1467-8276 (https://doi.org/10.1111/ajae.12365)

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Abstract

Although previous work on the earned income tax credit (EITC) has established that the program improves health outcomes of people from lower socioeconomic backgrounds, not much is known about the possible pathways through which higher EITC benefits affect health. This study contributes to the literature by evaluating the role of food insecurity as a mechanism underlying the relationship between the EITC and health. Using the 2009 federal EITC expansion, which increased benefit generosity for eligible families with three or more children, I estimate difference‐in‐differences (DD) and difference‐in‐difference‐in‐differences (DDD) models to evaluate whether the policy change is associated with improvements in food security. My analysis finds that the program expansion, which increased predicted annual EITC benefits by $496, is associated with a reduction in the likelihood of experiencing food insecurity by 8.1% for low‐educated households with three children. The observed improvements in food security are larger for non‐married households, a group that has previously been shown to be strongly affected by EITC changes. An evaluation of variations in state‐level EITC laws provides further indication that more generous benefits reduce food insecurity. The results, which are robust to estimating several alternative specifications, provide evidence that higher EITC benefits improve the well‐being of low‐income households by reducing food insecurity.

ORCID iDs

Lenhart, Otto ORCID logoORCID: https://orcid.org/0000-0003-0949-4820;
  • Item type:Article
    ID code:83478
    Dates:
    Date
    Event
    31 October 2023
    Published
    23 December 2022
    Published Online
    29 November 2022
    Accepted
    Subjects:Social Sciences > Economic Theory
    Department:Strathclyde Business School > Economics
    Depositing user: Pure Administrator
    Date deposited:08 Dec 2022 15:55
    Last modified:11 Nov 2024 13:43
    URI:https://strathprints.strath.ac.uk/id/eprint/83478
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