Title

Taxes and Adoptions from Foster Care: Evidence from the Federal Adoption Tax Credit

Abstract

I use administrative data on the universe of public adoptions to investigate whether the federal Adoption Tax Credit influences adoptions from foster care. Using a bunching analysis, I exploit a two-year change in 2010 and 2011 that made the credit refundable. I estimate there were about 2,400 more foster care adoptions, a 44 percent increase, nationwide in December 2011 than had the refundable credit not expired. Of this increase, I estimate an upper bound on the number of new adoptions of 1,790. Assuming all of the increase reflects retiming, I estimate a pull-forward window of up to six months.

Publisher

University of Wisconsin Press

Publication Date

Fall 10-1-2021

Publication Title

Journal of Human Resources

Department

Economics

Document Type

Article

DOI

10.3368/jhr.56.4.0618-9539R1

Keywords

Personal exemption, Incentives, Fertility, Subsidies, Decision, Children, Notches, Uncover, Family, Impact

Language

English

Format

text

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