This dissertation consists of three chapters that study questions on take-up and impacts of programs that increase the welfare of vulnerable populations.
In chapter 1, we estimate income effects on earnings using the 2021 expanded Child Tax Credit (CTC). Children born in January 2016 were eligible for a credit of $3,600, while children born in December 2015 were eligible for $3,000. We use tax data and a regression discontinuity design to estimate the earnings response to this temporary, one-year $600 increase in non-labor income. We find that employment decreased by 2.0% in 2021 and 1.1% in 2022 in low-income families, with no effect on families with higher incomes. This decrease in wage employment was offset by an increase in self-employment reported on tax returns, but this result is not robust in all specifications.
In chapter 2, we experimentally test whether information frictions and costs of filing taxes explain low take-up of the expanded CTC. We designed an information and counseling intervention contacting parents through school districts, coupled with assistance from local VITA (Volunteer Income Tax Assistance) programs. According to tax records, treatment increased tax filing by 2 percentage points, increased CTC claims by (a statistically insignificant) 2 percentage points, and tripled filing through VITA. Effects were concentrated among previous non-filers and Spanish speakers, demonstrating the value of targeted outreach.
In chapter 3, we provide the first causal evidence on reducing forced labor risk. 18 million people are victims of labor exploitation globally every year. In the Indian construction sector, the most common indicators include excessive hours, working on rest days, and unpaid wages. Micro-contractors (MCs), who directly control working conditions, often face financial challenges, primarily due to limited access to working capital. This paper tests if easing MC's liquidity constraints can reduce forced labor and improve working conditions. 250 MCs in Bengaluru and Delhi were randomly offered low-cost loans. Overall, working conditions did not improve 6-9 months after loans were disbursed, but we find significant variability: workers of more educated and non-migrant MCs experienced improvements in their working conditions, including timely payments and shorter working hours.