comprehensive evidence of the unintended consequences for child development of the Earned Income Tax Credit expansions during the …-off between the income effect (economic resources) and the substitution effect (time and quality of the parent-child interactions … support working mothers and their children. …

We study the effect of family income and maternal hours worked on child development. Our instrumental variable analysis … suggests different results for cognitive and behavioral development. An additional 1,000 USD in family income improves … parental investment matters and the substitution effect (less parental time) dominates the income effect (higher earnings) when …