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Does the Earned-Income Tax Credit Reduce Caregiving for Parents?

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September 25, 2024
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Does the Earned-Income Tax Credit Reduce Caregiving for Parents?
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Jeffrey Miron

Many conservatives, and some libertarians, endorse work requirements in social safety net programs. That position is understandable, but it is not convincing overall:

Our research examines whether increased EITC [earned income tax credit] generosity reduces the caregiving older adults receive from their EITC-eligible daughters. …

Our findings indicate that when the generosity of the EITC increased, unmarried EITC-eligible daughters provided less assistance with chores and functional limitations to their parents. This effect is especially pronounced among daughters with parents aged 65 and older. …

Our findings highlight an important unintended consequence of including work requirements in social programs and have implications for the well-being of older adults and the structure of social safety net programs.

Thus in this arena, as elsewhere, attempts to control individual behavior can misfire. Perhaps work requirements are still beneficial on net, but the case is far from clear.

This article appeared on Substack on September 25, 2024.

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