Connect with us

Hi, what are you looking for?

Investing

Does the Earned-Income Tax Credit Reduce Caregiving for Parents?

Jeffrey Miron

Many conservatives, and some libertarians, endorse work requirements in social safety net programs. That position is understandable, but it is not convincing overall:

Our research examines whether increased EITC [earned income tax credit] generosity reduces the caregiving older adults receive from their EITC-eligible daughters. …

Our findings indicate that when the generosity of the EITC increased, unmarried EITC-eligible daughters provided less assistance with chores and functional limitations to their parents. This effect is especially pronounced among daughters with parents aged 65 and older. …

Our findings highlight an important unintended consequence of including work requirements in social programs and have implications for the well-being of older adults and the structure of social safety net programs.

Thus in this arena, as elsewhere, attempts to control individual behavior can misfire. Perhaps work requirements are still beneficial on net, but the case is far from clear.

This article appeared on Substack on September 25, 2024.

You May Also Like

Editor’s Choice

[#item_full_content]

Editor’s Choice

[#item_full_content]

Disclaimer: KingOfCashSecrets.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 KingOfCashSecrets. All Rights Reserved.