Giving moms a bigger Child Tax Credit leads them to spend way less time on basic chores like feeding and bathing kids.
March 19, 2026
Original Paper
Child Tax Credit Purchasing Power and Short-Term Changes in Parental Time Allocation: Evidence from American Time Use Data
SSRN · 6344618
The Takeaway
While policy-makers assume cash transfers help parents invest more in their children, data shows that parents—especially mothers—use the extra money to 'buy back' their time. They outsource basic caregiving tasks to gain more personal leisure and social time, while keeping 'quality' interactions like play and education unchanged.
From the abstract
The Child Tax Credit (CTC) provides financial relief to families with children, yet little is known about how this policy shapes parental time allocation. This study investigates the effect of the 2017 CTC expansion using a difference-indifferences framework. Because the CTC provides a uniform dollar amount regardless of where families live, its practical value varies geographically: the same credit goes further in counties where childcare is relatively affordable than where it consumes a large