Money vs. time: Family income, maternal labor supply, and child development

Arbeitspapier

This paper analyzes the relationship between work-promoting policies and child development. First, we provide new comprehensive evidence of the unintended consequences for child development of the Earned Income Tax Credit expansions during the 1990s in the United States. Second, our theory-driven empirical model reconciles this result by shedding light on the trade-off between the income effect (economic resources) and the substitution effect (time and quality of the parent-child interactions) on a child's cognitive and behavioral development. This money versus time trade-off is most pronounced for disadvantaged mothers. Overall, our results call for a policy debate on how to design targeted supplements for disadvantaged families to support working mothers and their children.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 273

Classification and Topics

• Classification: Wirtschaft ; 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 ; Time Allocation and Labor Supply
• Subject: Child development ; family income ; maternal labor supply ; Kognitive Entwicklung ; Verhaltensentwicklung ; Arbeitsangebot ; Mutter ; Einkommen ; Kinderbetreuung ; Mindestlohn

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Agostinelli, Francesco ; Sorrenti, Giuseppe
• Event: Veröffentlichung
• (who): University of Zurich, Department of Economics
• (where): Zurich
• (when): 2021

Further information

• DOI: doi:10.5167/uzh-145230
• Handle: http://hdl.handle.net/10419/231432
• Last update: 10.03.2025, 11:43 AM CET