Effects of the Expanded Child Tax Credit (CTC) on Parental Time-use with Children

This study investigates how the 2021 expansion of the U.S. Child Tax Credit (CTC) affected parents’ time allocation with children. Drawing on American Time Use Survey (ATUS) diaries from 2019 (pre-policy) and 2021 (policy year), I estimate intent-to-treat effects using a difference-in-differences design, defining treatment as interviews conducted during the monthly payment period (July–December 2021). Outcomes capture both total time with children and their components: primary (primarily engaged) and secondary (multitasked) childcare. On average, the CTC expansion period is associated with a 36-minute reduction in total daily time with children (p<0.05), driven by a 33-minute decline in secondary childcare (p<0.05), while changes in primary childcare are small and statistically insignificant. Reductions are most pronounced among single parents (−57 minutes, p<0.01) and mothers (−44 minutes, p<0.05), with sharp drops in single parents’ primary care. A robustness check using simulated household-level benefit amounts shows small but measurable gains in childcare for two-parent households and partnered mothers, but not for single parents. Additional analysis indicates that time was often reallocated toward daily logistics, such as travel and shopping, rather than toward direct engagement with children. These findings suggest that, under pandemic-era constraints, unconditional cash support primarily alleviated household management demands rather than increasing parental engagement—particularly for time-constrained caregivers. I conclude that pairing income support with accessible childcare and flexible work arrangements may be necessary to promote equitable gains in the time parents spend with their children.