Government Transfers and Consumer Spending among Households with Children during COVID-19
In response to the spike in unemployment at the onset of the COVID-19 pandemic, the federal government implemented several large-scale cash-transfer programs. These included three rounds of economic impact payments for eligible households, the expanded Child Tax Credit, and expanded unemployment insurance. These transfers disproportionately benefited households with children, which in general have a higher vulnerability to labor market disruptions. This study examines the differential impact of these transfers on households with children relative to other household types due to differences in both access to transfers and marginal propensity to consume.