The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit: Reply
American Economic Review · 2017 · Volume 107 · Issue 2
Abstract
Dahl and Lochner (2012) provides some of the first causal evidence of the effects of family income on child achievement using changes in the Earned Income Tax Credit. Unfortunately, a coding error in the creation of total family income affects the first stage estimates and inflates the instrumental variable (IV) estimates. Importantly, it does not affect the reduced-form estimates or alter statistical significance of the IV estimates. This response shows that correcting this error does not alter the core findings or main message of the paper.
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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