The PSC Brown Bag Series runs live and on Zoom this year, Mondays from noon to 1.

Katherine Michelmore presents this brown bag seminar:

Does the EITC crowd out financial assistance from parents?

The Earned Income Tax Credit (EITC) is the largest cash transfer program to low-income working adults in the United States, worth over $60B annually. Financial support from parents to their adult children in the form of inter vivos transfers is worth a similar magnitude, over $80B. Yet we have no evidence on whether increasing public transfers from the EITC crowds out private transfers from parents to adult children. We use the Health and Retirement Study (HRS) and a simulated benefit approach to answer this question. We find no evidence that the EITC crowds out private financial transfers. Instead, we find that increased EITC generosity increases the money unmarried mothers receive from their own parents. Consistent with previous work, EITC generosity also increases the likelihood that parents help their unmarried daughters with childcare so increases in financial transfers are not a substitute for decreasing time help. Our findings lend support to theories of intergenerational transfers that focus on parents’ role in easing credit constraints and supporting children as they transition into the labor market and suggest that some of the positive effects of the EITC may be amplified by increases in parental financial support.

Katherine Michelmore is an associate professor of public policy at the University of Michigan's Gerald R. Ford School of Public Policy. Michelmore is a leading scholar and educator on the social safety net, education policy, labor economics, and economic demography. A research associate at NBER, she is a recognized expert on the efficacy of the Earned Income Tax Credit and its impact on children. 

Join us in person at ISR (Thompson Street) Room 1430.

Or online: Join Zoom Meeting
https://umich.zoom.us/j/95418610585?pwd=Z0cvdkF1T0R2cG1lRDEvVmlnbVdlZz09

Meeting ID: 954 1861 0585
Passcode: 818420
One tap mobile
+13017158592,,95418610585# US (Washington DC)
+13092053325,,95418610585# US

Dial by your location
+1 301 715 8592 US (Washington DC)
+1 309 205 3325 US
+1 312 626 6799 US (Chicago)
+1 646 876 9923 US (New York)
+1 646 931 3860 US
+1 564 217 2000 US
+1 669 444 9171 US
+1 669 900 6833 US (San Jose)
+1 719 359 4580 US
+1 253 215 8782 US (Tacoma)
+1 346 248 7799 US (Houston)
+1 386 347 5053 US
+1 647 374 4685 Canada
+1 647 558 0588 Canada
+1 778 907 2071 Canada
+1 780 666 0144 Canada
+1 204 272 7920 Canada
+1 438 809 7799 Canada
+1 587 328 1099 Canada
Meeting ID: 954 1861 0585
Find your local number: https://umich.zoom.us/u/aCRAyuQaT

Join by SIP
95418610585@zoomcrc.com

Join by H.323
162.255.37.11 (US West)
162.255.36.11 (US East)
115.114.131.7 (India Mumbai)
115.114.115.7 (India Hyderabad)
213.19.144.110 (Amsterdam Netherlands)
213.244.140.110 (Germany)
103.122.166.55 (Australia Sydney)
103.122.167.55 (Australia Melbourne)
149.137.40.110 (Singapore)
64.211.144.160 (Brazil)
149.137.68.253 (Mexico)
69.174.57.160 (Canada Toronto)
65.39.152.160 (Canada Vancouver)
207.226.132.110 (Japan Tokyo)
149.137.24.110 (Japan Osaka)
Meeting ID: 954 1861 0585
Passcode: 818420