Primary Submission Category: Policy
Health Effects of the 2021 Earned Income Tax Credit Expansion on Young Adults Without Children
Authors: Abdinasir Ali, Emily Dore, Rita Hamad,
Presenting Author: Abdinasir Ali*
In 2021, Congress expanded the earned income tax credit (EITC)—the largest US poverty alleviation program—to previously ineligible young adults without children. The EITC improves health by targeting poverty as a social determinant of health, but no studies to our knowledge have examined the health effects of the 2021 expansion on this newly eligible group in this key period of the lifespan. We evaluated the health effects of the 2021 EITC expansion among young adults without children. This quasi-experimental analysis used 2021-2023 serial cross-sectional data from the Behavioral Risk Factor Surveillance System (N=28,521). Using differences-in-differences and event study models, in which (newly eligible) young adults aged 18-24 years without children were considered exposed, and those aged 19-35 years (already eligible) were unexposed. We compared those interviewed during the EITC expansion to those interviewed before the expansion and after its expiration. Our outcomes included days of poor mental health in the past 30 days, days of poor physical health in the past 30 days, and health behaviors such as exercise and binge drinking in the past 30 days. We also calculated a standard binary measure of mental health for whether individuals had 14+ poor mental health days in the past 30 days (“frequent mental distress”). Models adjusted for self-reported demographic covariates. The 2021 EITC expansion was associated with fewer poor mental health days (-1.06, 95%CI: -1.92, -0.21). Event study models confirmed this and suggested improved physical health. There were no effects on other outcomes. Effects were similar among various subgroups (i.e., sex, race/ethnicity). Results were robust to sensitivity analyses. Expanding the EITC again may improve the wellbeing of young adults without children, a group often left out of US safety net programs during this key juncture of their life course. This study informs ongoing policy discussions on state and federal poverty policies.