Poster #115 - The Expansion of The EITC For Young Adults in 2021 on Mental Health of Renters

• In Event: Saturday Poster Luncheon

Abstract

In response to the economic hardships due to COVID-19 pandemic, the government enacted American Rescue Plan (ARP) Act in March of 2021, which included several income support policies to support economically vulnerable populations. One key policy was the temporary expansion of the Earned Income Tax Credit (EITC) for childless adults for a period of one year. We evaluated the impact of the EITC for childless adults on mental health of home renters and homeowners using data from the Behavioral Risk Factor Surveillance System from 2021 through 2023. The mental health outcomes included the number of mentally unhealthy days in the past 30 days, and an indicator for frequent mental distress (≥14 unhealthy days). We employed a difference-in-differences design comparing outcome changes before and after the EITC expansion between young adults aged 18–24 years (treatment group) and older adults aged 25–29 years (control group), separately for renters and homeowners. The EITC expansion was associated with statistically significant improvements in mental health among young renters but not homeowners. Specifically, after the expansion in 2022, renters aged 18-24 years experienced 2.21 fewer mentally unhealthy days, and a 9.8 percentage-point decrease in the probability of frequent mental distress, compared to older renters. The study findings suggest that anti-poverty programs like EITC are associated with improvement in mental health among young adults who rent. 

Author

• Abdinasir Ali, Harvard University
  Presenting Author