"Although the EITC is sometimes understood as mere income supplementation for low-earnings workers, it is just as important that it also increases the opportunities available to children born into low-income families. The EITC has impressive downstream benefits: It reduces the likelihood of low-weight births; it improves the academic performance of children; and it ultimately increases college enrollment. When parental income is increased via the EITC, children are raised in healthier and less stressful circumstances, which in turn give them the capacity and opportunity to make human capital investments of the sort routinely available to children from higher-income backgrounds. The EITC is, in short, one of the state’s most important opportunity-equalizing institutions."
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