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Table 2 Estimated effects of EITC on family earnings relative to poverty, family heads, or individuals, aged 21–44, 1997–2006

From: Policy levers to increase jobs and increase income from work after the Great Recession

 

(1)

(2)

(3)

(4)

 

Family head or individual

Single female family head or individual

Single female family head or individual, high-school degree at most

Single female family head or individual, black or Hispanic

P(earnings < poverty)

    

 EITC × kids

−.04 (.07)

−.16 (.17)

−.24 (.18)

.06 (.28)

 EITC

−.00 (.05)

−.06 (.08)

−.02 (.10)

−.12 (.18)

P(earnings < .5∙poverty)

    

 EITC × kids

−.09 (.06)

−.34 (.18)

−.42 (.23)

−.14 (.25)

 EITC

.02 (.04)

.00 (.06)

.05 (.09)

−.14 (.14)

N

362,811

98,327

65,839

34,267

  1. Notes: All estimates are weighted, and standard errors are clustered on states. Linear probability estimates are reported. The regression also includes controls for the number of children, dummy variables for education (high-school dropout, high-school degree, some college, bachelor’s degree or higher), dummy variables for number of children as well as the number of children under age six (all observed values), dummy variables for marital status (never married; married spouse present; married spouse absent; and divorced, widowed, or separated), dummy variables for black or Hispanic, age and its square, the state unemployment rate, and state and year fixed effects. In addition, the model includes a full set of interactions between kids and both the year dummy variables and the state dummy variables. The estimated coefficients of the EITC-kids interactions are robust to including state-specific linear trends, or state-year interactions; in the latter specifications, the main EITC effect drops out. The sample is restricted to heads of families, primary individuals, or unrelated individuals.
  2. Source: Neumark and Wascher (2011), using CPS Annual Demographic Files
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