2023 Articles

The Effect of the Earned Income Tax Credit on Physical and Mental health—Results from the Atlanta Paycheck Plus Experiment

Muennig, Peter A.; Belsky, Daniel; Malinsky, Daniel S.; Nguyen, Kieu-Giang; Rosen, Zohn; Allen, Heidi L.

Policy Points:
The Paycheck Plus randomized controlled trial tested a fourfold increase in the Earned Income Tax Credit (EITC) for single adults without dependent children r over 3 years in New York and Atlanta.

In New York, the intervention improved economic, mental, and physical health outcomes. In Atlanta, it had no economic benefit or impact on physical health r and may have worsened mental health.

In Atlanta, tax filing and bonus receipt were lower than in the New York arm of the trial, which may explain the lack of economic benefits. Lower mental health scores in the treatment group were driven by disadvantaged men, and the study sample was in good mental health.