The Effect of State Earned Income Tax Credit (EITC) Eligibility on Food Insufficiency during the COVID-19 Pandemic

17 Pages Posted: 30 Jun 2022

Date Written: June 29, 2022

Abstract

This paper uses data from the Household Pulse Survey to examine whether and for how long the eligibility to receive state Earned Income Tax Credit (EITC) benefits reduced self-reported household food insufficiency among the eligible households during the COVID-19 pandemic. The result of a difference-in-differences (DD) model, estimated using ordinary least squares (OLS), indicates the eligibility to receive state EITC benefits reduced food insufficiency among the eligible between mid-February 2021 and early October 2021 by about 2 percentage points. However, the results of an event study model, which allows for the possibility of a decaying effect, reveal the effect was significantly different from 0 in only some of the post-treatment biweekly periods. Overall, the results suggest that state EITC eligibility reduced food insufficiency among the eligible over a relatively short period.

Keywords: Food Insufficiency, State Earned Income Tax Credit, Household Pulse Survey, COVID-19 Pandemic

Suggested Citation

Das, Vivekananda, The Effect of State Earned Income Tax Credit (EITC) Eligibility on Food Insufficiency during the COVID-19 Pandemic (June 29, 2022). Available at SSRN: https://ssrn.com/abstract=4149892 or http://dx.doi.org/10.2139/ssrn.4149892

Vivekananda Das (Contact Author)

University of Wisconsin-Madison ( email )

Madison, WI 53706
United States

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