The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit: Comment
American Economic Review · 2017 · Volume 107 · Issue 2
Abstract
In a recent article in the American Economic Review , Dahl and Lochner (2012) use changes in the Earned Income Tax Credit to estimate the causal effect of family income on child achievement. Their instrumental variable (IV) estimates imply that a $1,000 increase in income raises combined math and reading test scores by about 6 percent of a standard deviation. I document a variable coding error. Correcting this error reduces the IV estimates by 32 percent; correcting this error does not change the qualitative conclusions of the study.
Keywords
Personal Income and Other Nonbusiness Taxes and Subsidies, includes inheritance and gift taxes, Fiscal Policies and Behavior of Economic Agents: Household, Analysis of Education, Welfare, Well-Being, and Poverty: Government Programs, Provision and Effects of Welfare Programs, Fertility, Family Planning, Child Care, Children, Youth
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