Connect with us

Hi, what are you looking for?

Fibonacci Investing News

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

Fibonacci Stock News

In the previous technical note, it was categorically mentioned that while the markets may attempt to inch higher, they may not form anything beyond...

Fibonacci Investing News

Chris Edwards Many American cities need more low‐​income housing, but governments reduce supply and raise construction costs with regulations, taxes, and bureaucracy. The Wall...

Fibonacci Tech News

Illustration by Alex Castro / The Verge The question of who gets to regulate crypto has some answers, as a judge has ruled the...

Fibonacci Tech News

Image: Brazil Climate Summit At the moment I arrived at the Brazil Climate Summit event, it felt like home to me. As I opened...