The Effects of Income on Health: New Evidence from the Earned Income Tax Credit

51 Pages Posted: 22 Jul 2015 Last revised: 5 May 2017

See all articles by Otto Lenhart

Otto Lenhart

University of Strathclyde - Strathclyde Business School

Multiple version iconThere are 2 versions of this paper

Date Written: March 23, 2017

Abstract

This study examines the relationship between income and health by using an expansion of the Earned Income Tax Credit (EITC) as exogenous variations of earnings. The paper adds to previous work in three ways. First, I estimate treatment effects on the treated using simulated EITC benefits and longitudinal data to remove concerns about measurement error and sample selection. Second, I test whether health effects vary across the EITC schedule. Third, I examine the role of food expenditures and health insurance as potential mechanisms. The study finds that income improves health, while food expenditures and insurance coverage are likely channels.

Keywords: Income; Health, Earned Income Tax Credit, Mechanisms

JEL Classification: I14, I38, J38

Suggested Citation

Lenhart, Otto, The Effects of Income on Health: New Evidence from the Earned Income Tax Credit (March 23, 2017). Available at SSRN: https://ssrn.com/abstract=2633526 or http://dx.doi.org/10.2139/ssrn.2633526

Otto Lenhart (Contact Author)

University of Strathclyde - Strathclyde Business School ( email )

100 Cathedral Street
Glasgow G1 1XU
United Kingdom

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