Taxes and Adoptions from Foster Care: Evidence from the Federal Adoption Tax Credit
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.
Brehm, Margaret E. 2021. "Taxes and Adoptions from Foster Care: Evidence from the Federal Adoption Tax Credit." Journal of Human Resources 56(4): 1031-1072.
University of Wisconsin Press
Journal of Human Resources
Personal exemption, Incentives, Fertility, Subsidies, Decision, Children, Notches, Uncover, Family, Impact