The Effect of the Earned Income Tax Credit on Physical and Mental Health—Results from the Atlanta Paycheck Plus Experiment

For workers who eke out a hand-to-mouth existence, an income supplement at tax time could plausibly have a positive and measurable impact on economic well-being and health by improving purchasing power for healthy foods or renting an apartment in a safer neighborhood.¹ It could also alleviate the psychological stress associated with living paycheck to paycheck, which is associated with premature aging throughout the life course.^2, 3 However, it is difficult to qualify for many welfare programs in the United States, and often the neediest go without because of bureaucratic barriers, such as onerous filing requirements.⁴

Low-wage work can be a particularly insidious health threat for single adults without children in America because this group is often ineligible for welfare income supplements. Although single adults without custodial children are eligible for the Earned Income Tax Credit (EITC), they are only eligible for one-fourth of the amount provided to single parents with one child.⁵

References

1. Chetty R, Hendren N, Katz LF. The effects of exposure to better neighborhoods on children: new evidence from the moving to opportunity experiment AmEconRev. 2016;106(4):855-902.
2. Hughes A, Smart M, Gorrie-Stone T, et al. Socioeconomic position and DNA methylation age acceleration across the life course. Am J Epidemiol. 2018;187(11):2346-2354.
3. Raffington L, Belsky DW, Kothari M, Malanchini M, Tucker-Drob EM,Harden KP. Socioeconomic disadvantage and the pace of biological aging inchildren. Pediatrics. 2021;147(6):e2020024406
4. Muennig P. Futureproofing social support policies for population health. Milbank Q. 2023;101(S1):176-195
5. Falk G. The Earned Income Tax Credit (EITC): an overview. Congressional Re-search Service. Published October 22, 2014. Accessed September 22, 2023.https://sgp.fas.org/crs/misc/RL31768.pd