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The EITC and Maternal Time Use: More Time Working and Less Time with Kids?

Author

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  • Jacob Bastian

    (Rutgers University)

Abstract
Parents spend considerable time and resources investing in their children's development. Given evidence that the Earned Income Tax Credit (EITC) aects maternal labor supply, we investigate how the EITC affects a broad array of time-use activities, focusing on the amount and nature of time spent with children. Using 2003-2018 time-use data, we find that federal and state EITC expansions increase maternal work time, which reduces time devoted to home production, leisure, and time with children. However, for children of all ages, almost none of the reduction comes from time devoted to "investment" activities, such as active learning and development activities.

Suggested Citation

  • Jacob Bastian, 2020. "The EITC and Maternal Time Use: More Time Working and Less Time with Kids?," Working Papers 2020-077, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2020-077
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    Cited by:

    1. Jonas Jessen & Christa Katharina Spieß & Sevrin Waights, 2022. "Centre‐Based Care and Parenting Activities," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(6), pages 1356-1379, December.
    2. Elizabeth M. Caucutt & Lance Lochner & Joseph Mullins & Youngmin Park, 2020. "Child Skill Production: Accounting for Parental and Market-Based Time and Goods Investments," NBER Working Papers 27838, National Bureau of Economic Research, Inc.
    3. Jacob E. Bastian, 2024. "The EITC in rural and economically distressed areas: More bang per buck?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(1), pages 136-159, February.
    4. Dirk Krueger & Alexander Ludwig & Irina Popova, 2024. "Shaping Inequality and Intergenerational Persistence of Poverty: Free College or Better Schools," NBER Working Papers 32467, National Bureau of Economic Research, Inc.
    5. Diane Whitmore Schanzenbach & Michael R. Strain, 2021. "Employment Effects of the Earned Income Tax Credit: Taking the Long View," Tax Policy and the Economy, University of Chicago Press, vol. 35(1), pages 87-129.
    6. Pierre Lefebvre & Claude Felteau, 2023. "Can universal preschool education intensities counterbalance parental socioeconomic gradients? Repeated international evidence from Fourth graders skills achievement," Working Papers 23-01, Research Group on Human Capital, University of Quebec in Montreal's School of Management.
    7. Koopmans, Pim & van Lent, Max & Been, Jim, 2024. "Child Penalties and the Gender Gap in Home Production and the Labor Market," IZA Discussion Papers 16871, Institute of Labor Economics (IZA).
    8. Taryn W. Morrissey, 2023. "The Earned Income Tax Credit and Short-Term Changes in Parents’ Time Investments in Children," Journal of Family and Economic Issues, Springer, vol. 44(2), pages 412-433, June.
    9. Taryn W. Morrissey, 2023. "The minimum wage and parent time use," Review of Economics of the Household, Springer, vol. 21(3), pages 1043-1062, September.
    10. Francesco Agostinelli & Emilio Borghesan & Giuseppe Sorrenti, 2020. "Welfare, Workfare and Labor Supply: A Unified Evaluation," Working Papers 2020-083, Human Capital and Economic Opportunity Working Group.
    11. Bastian, Jacob & Bian, Luorao & Grogger, Jeffrey, 2022. "How Did Safety-Net Reform Affect the Education of Adolescents from Low-Income Families?," Labour Economics, Elsevier, vol. 77(C).
    12. Claudia Hupkau & Jenifer Ruiz-Valenzuela, 2022. "Work and children in Spain: challenges and opportunities for equality between men and women," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 13(1), pages 243-268, May.
    13. William Schneider & Lindsey Rose Bullinger & Kerri M. Raissian, 2022. "How does the minimum wage affect child maltreatment and parenting behaviors? An analysis of the mechanisms," Review of Economics of the Household, Springer, vol. 20(4), pages 1119-1154, December.
    14. Bastian, Jacob E. & Jones, Maggie R., 2021. "Do EITC expansions pay for themselves? Effects on tax revenue and government transfers," Journal of Public Economics, Elsevier, vol. 196(C).

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    More about this item

    Keywords

    EITC; tax policy; time use; child investment; female labor supply;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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