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American Economic Review Vol. 107 No. 2 2017

The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit: Comment

Samuel Lundstrom

Litigation Analytics, 8505 Freeport Parkway, Suite 390, Irving, TX 75063 (e-mail: )

Abstract

In a recent article in the American Economic Review, Dahl and Lochner (2012) use changes in the Earned Income Tax Credit to estimate the causal effect of family income on child achievement. Their instrumental variable (IV ) estimates imply that a $1,000 increase in income raises combined math and reading test scores by about 6 percent of a standard deviation. I document a variable coding error. Correcting this error reduces the IV estimates by 32 percent; correcting this error does not change the qualitative conclusions of the study.

DOI
10.1257/aer.20150988
Volume
107
Issue
2
Pages
623-628
Language
en
Sources
openalex bibtex:phds-export.bib crossref

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