Long‐Term Health Effects of Early Childhood Exposure to the Child and Dependent Care Tax Credit

This study investigates the long-term health effects of early childhood exposure to the U.S. Child and Dependent Care Tax Credit (CDCTC). Using longitudinal data from the Child Development Supplement of the Panel Study of Income Dynamics, we examine the connection between early-life CDCTC exposure and health outcomes for children aged 6-18. The findings reveal varied effects depending on maternal education: children of mothers with more than a high school education experience adverse physical and mental health outcomes. In contrast, children of mothers who have a high school education or less show improvements in their mental health. These results indicate that, despite its intention to aid working families, the CDCTC may have complex effects on children's health, influenced by socio-economic factors. This study highlights the need for careful policy designs that consider the varying needs of families with different socio-economic statuses.