New study shows advance child tax credit does not affect number of jobs

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Separate studies by the University of Michigan and Columbia University independently show that this year’s advance monthly payments Child tax credit reduced child poverty by about 30%.

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Another major achievement, food insecurity, has also dramatically decreased among beneficiary populations as a result of child tax credit payments.

What was not so clear until now was the effect of these monthly payments on the employment figures. It was widely argued that the monthly payments would discourage recipients from re-entering the workforce, so the anticipated portion would negatively impact employment numbers. A new study from Columbia University shows analysis of real-world data that doesn’t support such claims.

Using data from the monthly files of the current population survey between April and August 2021, as well as microdata from the household census survey from April to September 2021, the researchers took advantage of the variation in eligibility for policies between households with children and those without. The variation in the amounts of CTC payments received was taken advantage of between households with children and those without, as well as the variation in the amounts of CTC payments received by households according to age. and the number of children and income levels before the CTC.

What they found were results that “were inconsistent with claims that the expanded CLC has negative employment effects that significantly outweigh the observed reductions in poverty and hardship.”

The researchers said they found very small, statistically insignificant, and inconsistently signed impacts of the CTC on employment in the previous week and on labor market activity. These results were not sufficient to conclude that CTC payments had a negative effect on employment figures.

What these results showed was that the data is “consistent with other real world results showing a decrease in poverty and food insufficiency in families with children as a result of the expansion of the population. CTC “.

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The fourth CTC advance payment is expected to arrive in bank accounts this Friday, October 15. This study analyzed preliminary information from the first three payments and presented the data as provided. The next installment will provide more information, against a backdrop of historically strained labor markets and labor disputes associated with rising inflation and fears of the Delta variant.

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