Can the Earned Income Tax Credit Increase the Number of Unmarried Black Parent Families?

Since the 1960s an increasing number of Black children are reared by poor unmarried parents on welfare. To reduce poverty, minimize welfare dependence, and provide a monetary incentive for low-income, unmarried parents to wed, the government established the earned income tax credit (EITC). Since its establishment in 1975, however, scholars know very little about whether this credit can increase Black marriage among low-income couples with children. To address this paucity, I support and extend Mayhew's (1980 Mayhew , B. H. ( 1980 ). Structuralism versus individualism: Part I, Shadowboxing in the dark . Social Forces , 59 , 335 – 375 .[Crossref], [Web of Science ®] , [Google Scholar], 1981 Mayhew , B. H. ( 1981 ). Structuralism versus individualism: Part II, Ideological and other obfuscations . Social Forces , 59 , 627 – 648 .[Crossref], [Web of Science ®] , [Google Scholar]) micro-sociological and macro-sociological perspectives by highlighting the individual, interpersonal, and sociological factors that encourage or discourage Black marriage. I examined the qualitative responses of 17 Blacks between the ages of 23 and 61 years regarding whether they believed an increased child dependent tax credit (limited to married parents) would increase the number of married parent Black families. Qualitative analyses of the data revealed that although some participants were hopeful that the EITC could increase the number of Black marriages, most did not believe the EITC would substantially increase the number of Black marriages because the credit fails to address the intrinsic value of marriage. Supporting qualitative data are presented in connection with each theme. Practical and policy implications for Black marriage are also discussed.     

The Working Families’ Tax Credit and Some European Tax Reforms in A Collective Setting

A framework for simplified implementation of the collective model of labor supply decisions is presented in the context of fiscal reforms in the UK. Through its collective form the model accounts for the well known problem of distribution between wallet and purse, a broadly debated issue which has so far been impossible to model due to the limitations of the unitary model of household behavior. A calibrated data set is used to model the effects of introducing two forms of the Working Families’ Tax Credit. We also summarize results of estimations and calibrations obtained using the same methodology on data from five other European countries. The results underline the importance of taking account of the intrahousehold decision process and suggest that who receives government transfers does matter from the point of view of labor supply and welfare of household members. They also highlight the need for more research into models of household behavior.

Rurality and Income Inequality in the United States, 1975–2015

Recent events have focused attention on the perceived widening of the economic divide between urban and rural areas, and on the continued rise of national income inequality. We demonstrate that, in fact, the average income gap between urban (metropolitan) and rural (nonmetropolitan) households has not risen over the past 40 years, and makes virtually no contribution to national income inequality. Rising national inequality is driven by rising inequality within both urban and rural America, not by an urban/rural divergence. As is well known, the growing dispersion of household money income is partly driven by rising wage inequality, particularly in urban areas. Less well recognized is the role played by other income sources. We show that a decline in the progressivity of the distribution of social security payments and cash transfers, and an increase in the regressivity of the distribution of retirement incomes, have jointly made a comparably large contribution to rising income inequality. At the same time, the share of income from self-employment has declined, particularly in rural America, and because self-employment income is very unequally distributed, its diminution has retarded the growth of rural inequality. In 2014–15, however, rural inequality increased, cutting the urban/rural inequality gap in half.     

Welfare and Work: Complementary Strategies forLow‐Income Women?

We examine the effects of mothers' strategies of combining employment and welfare receipt during the first 3 years of their child's life on the child's cognitive development, behavior problems, and home learning environment at ages 5 to 6. We compare the child outcomes of those mothers who were continuously employed and received no welfare with (a) those who worked some or all of the 3 years and also received public assistance and (b) those who were totally dependent on public assistance. We studied children in single‐parent families (N= 1271 ) living below 200% of the poverty threshold using data from the National Longitudinal Survey of Youth—Child Supplement. No negative association was found on most child outcomes with a mother's employment whether or not it was combined with public assistance. However, mothers' not working at all and receiving financial support solely from AFDC was associated with negative child outcomes. We discuss the implications of these findings for the possible effects of the new welfare laws on families and young children.     

Is Dual Income Costly for Married Couples? An Analysis of Household Expenditures

This study analyzed annual household outlays in the recent Consumer Expenditure Survey to obtain the cost of dual income for married couples. Of the crude differences between two- and one-earner married households in payments and expenditures, the portion reflecting structural differences in demand was obtained through decomposition as the measure of the cost of dual income. We found dual-earner couples’ work-related expenditures diminished fulltime working wives’ net contribution by 1.7 % of their average earning. Greater tax burden and Social Security payments diminished fulltime working wives’ net contribution by additional 2.0 and 3.4 % of their average earnings, respectively. Dual-earner couples contributed more to private pension plans and experienced lower levels of current-period consumption including consumption of market substitutes for housework.     

Orphanhood and School Attendance in Nigeria: Do Gender and Household Income Matter?

Using the 2010 Nigeria Education Data Survey, this research examines the interaction of paternal and maternal/double orphanhood with gender and household income on school attendance; we ascertain whether the relationship varies by age and urban-rural residence. The research employs an economic explanation and the sociocultural construction of the gender division of labor in sub-Saharan Africa as theoretical frameworks. Findings show that the combination of being a maternal/double orphan and being female or living in a poor household leads to the lowest probability of attending school. The results also indicate that female maternal/double orphans who live in rural areas and whose age is eleven or older have the lowest probability of attending school. Both results are statistically significant. The findings support the economic explanation and the theory of sociocultural construction of the gender division of labor. Future policies should focus on subsidizing the costs of schooling for orphans.     

Fathers’ Financial Support of Children in a Low Income Community in South Africa

We used data from the Birth to Twenty Cohort study to understand children’s receipt of financial support from their fathers in a low income, Black community in urban South Africa. Specifically, we (1) described fathers’ financial support over the life course of children; (2) estimated survival probabilities of receiving support for all children and not receiving support for children who experienced a parental union dissolution; and (3) identified factors that explained variation in the receipt of support after a union dissolution. Results suggest that most children received full or partial support throughout the life course. Furthermore, a high proportion of children received support after a union dissolution with much of the variation driven by pre-dissolution support, father’s education and the presence of extended kin.     

Spousal Income and Sick Leave: What do Twins Tell us About Causality?

Theoretical arguments suggest that a higher socioeconomic status can improve health and as a consequence reduce the need for sick leave. The purpose of this study is to empirically investigate causal effects between spousal income and absence from the workplace due to sickness. To control for unobserved heterogeneity a Swedish sample of female twins and a semiparametric censored fixed-effects model was used. Results for dizygotic (fraternal) twins indicated that male spousal income, i.e., a non-shared environmental influence, reduced the share of income that was government-paid sickness benefits. Data on monozygotic twins, who have identical genes, provide a more complete control for unobserved heterogeneity. No causal effect was found in this case.

Does the Vertical Mosaic Still Exist? Ethnicity and Income in Canada, 1991*

Cet article met à jour nos connaissances sur les liens entre appartenance ethnique et classe sociale au Canada en s'appuyant sur le document The Public Use Microdata File for Individuals, qui se fonde sur le recensement du Canada de 1991. L'analyse se fait en trois temps: on examine d'abord les liens entre l'appartenance ethnique et le niveau d'etudes par groupe ethnique; on considère ensuite les revenus en fonction du niveau d'études chez différents groupes ethniques; enfin, à l'aide de l'analyse de régression log-linéaire, on étudie les liens entre appartenance ethnique, niveau d'études et revenu en neutralisant les effets de nombreuses autres variables sociales. On constate que, dans la plupart des catégories de niveau d'études, les Canadiens-Français ont des revenus beaucoup plus élevés que les Canadiens-Anglais, lorsqu'on neutralise les effets d'autres variables. À cette exception près, il n'y a presque aucune différence de revenus entre les différentes ethnies d'origine européenne possédant le même niveau d'études lorsqu'on neutralise les effets d'autres variables sociales. Toutefois, ceux qui appartiennent à des minorités visibles ont des revenus beaucoup plus modestes que les autres Canadiens, quel que soit leur niveau d'études. L'origine raciale est done devenue la principale cause d'inégalités de revenus au Canada. This paper updates our knowledge about the relationship between ethnicity and social class in Canada using The Public Use Microdata File for Individuals drawn from the 1991 Census of Canada. We provide three levels of analysis. First, we examine the relationship between ethnicity and education by ethnic group. Second, we examine the “return to education” in terms of income for those of various ethnic groups. Third, we use log-linear regression to examine the relationship between ethnicity, education and income while controlling for the effects of a variety of other social variables. We find that, at most educational levels, Canadians of French ethnicity now earn significantly more than those of British ethnicity when other variables are controlled. With this exception, for those of European ethnic backgrounds there are now virtually no significant differences in income within educational levels when other social variables are controlled. However, those who belong to visible minorities have significantly lower incomes than other Canadians at all educational levels. Race is now the fundamental basis of income inequality in Canada.     

Beyond Employment and Income: The Association Between Young Adults’ Finances and Marital Timing

This study tested an extension of the theory of marital timing (Oppenheimer, Am J Sociol 94:563–591, 1988) by assessing whether visible and less visible financial assets and debt mediated the relationship between employment and the likelihood of marriage. We conducted these prospective, longitudinal analyses using a sample of 1,522 never-married young adults from the National Survey of Families and Households. For participants who were not cohabiting at Wave 1, financial issues such as car values predicted marriage but did not mediate the relationship between work hours, occupational prestige, and the likelihood of marriage. For cohabiting participants, employment factors were the strongest predictor of marriage.     

Income Inequality across the Rural-Urban Continuum in the United States, 1970–2016*

The growth in macro-level income inequality in the United States is well established, but less is known about patterns of inequality at subnational scales and how they vary between and within rural and urban localities. Using data from the Decennial Census and American Community Survey, we produce estimates of within-county income inequality from 1970 to 2016 and analyze differences in inequality levels, the persistence of high (low) inequality, and populations' exposure to high (low) inequality across the rural-urban continuum. We find that income inequality has historically been higher in non-metropolitan than metropolitan counties, but inequality levels converged by 2016 due to growing inequality in metropolitan counties. Additionally, levels of inequality were generally persistent within counties over time, except that counties characterized by low inequality in 1970 were unlikely to remain as such in 2016. Third, non-trivial shares of the metropolitan population resided in low-inequality contexts in 1970, but virtually none of the U.S. population resided in such places by 2016. Residence in high-inequality counties is normative in rural and urban America. This statistical analysis provides an updated portrait of income inequality across the rural-urban continuum, and should spur additional research on stratification in rural America during an era of growing inequality.     

Economic Insecurity and Fertility: Does Income Volatility Impact the Decision to Remain a One-Child Family?

This study is the first to investigate the economic factors behind the recent rise of the one-child family in the United States. Using longitudinal data from the Panel Study of Income Dynamics (PSID) that runs from 1968 to 2013 and a variety of different model specifications with state and year fixed effect, including logistic regression, linear probability, and Cox proportional hazard models, the study examined the effect of absolute income volatility on the decision of having an only-child family. The study found that an increase in the standard deviation of income is associated with a decrease in the probability of having a second child for mothers who are in the second quartile of income distribution.     

Change in Parenting Behaviors from Infancy to Early Childhood: Does Change in Family Income Matter?

The current study intended to answer two main questions: First, do parenting behaviors change as family income changes? Second, if changes in family income are associated with changes in parenting behaviors, is this association different for families of various poverty statuses and ethnicities? Secondary data analyses were conducted using data from Phases I and II of the National Institute of Child Health and Human Development Study of Early Child Care and Youth Development. The authors found family income increase to predict decreased maternal detachment and negative regard but bears no relation to maternal sensitivity or stimulation of development. Changes in family income also predicted changes in parenting behaviors especially strongly for poor, Hispanic and White families. Implications for parenting research and public policy are discussed.     

How Do Neoliberal Policies Affect Income Inequality? Exploring the Link Between Liberalization,Finance, and Inequality

It is commonly asserted that economic liberalization increases income inequality in advanced industrial societies. However, the empirical evidence is inconclusive. The current investigation thus attempts to shed light on this important topic by presenting the argument that economic liberalization indirectly augments income inequality given its tendency to expand financial activity. This contention is tested using a panel dataset of 20 developed economies for the years 1988 to 2009. According to the fixed effects two‐stage least squares models, economic liberalization is positively associated with financialization, while financial activity is positively connected to income inequality. These results are found to be consistent across a variety of regression parameters and robustness checks.     

Income generation, local economic development and community development: paying the price for lacking business skills?

The introduction of the notion of developmental local governmentas entrenched in the South African constitution in 1994 hasrequired municipalities and cities to consider initiatives toenhance their local economies. At the same time, the socialwelfare paradigm has shifted from one of welfare to development.One way of ensuring the sustainability of this developmentalparadigm is to embark on income-generating projects or businesses.The Free State provincial government created various projectsto develop local economies and to establish income-generatingprojects with a view to making people more self-reliant andtheir livelihoods more sustainable. This article aims to evaluatelocal economic development and income-generating projects inthe Free State province from the perspective of business principles.     

‘Say no to the ATO’: the cultural politics of protest against the Australian Tax Office

Researching a broad array of protest forms offers valuable insights into social change. One such unusual form includes protests against tax law rulings made by the Australian Tax Office (ATO). Across Australia thousands of taxpayers invested in ‘tax effective schemes’ in the late 1990s. However, by 2000 each owed on average AUS$75,000 as a result of these schemes being ruled illegal. Rather than pay the money owed many have refused, publicly protesting through formal administrative and political mechanisms, and through public debate. At first glance, this appears an issue of individual economic self‐interest. However, qualitative research methods provide a more detailed and contextual picture of why protestors feel justified in their actions. Focusing on the hard‐hit Goldfields region of Western Australia, protests are argued as being about real and imagined identities; concerns over roles and status in Australian society; and the failings of institutional and political frameworks that should support, not penalize, citizens. The offence and ‘moral shock’ of being publicly labelled as ‘tax cheats’ facilitated protestors' view of themselves as workers trying to do the ‘right thing’ by their families and country. And as such, the normally private issue of individual tax affairs became a public debate and a site of cultural politics wherein the ATO's official discourse of rationality and regulation compliance is received by protestors as symbolic of their beleaguered position in Australian society. Here, citizenship struggles have not been eclipsed by post‐material or ‘new social movement’ concerns. Rather, sites of cultural politics, such as struggles over tax and identity, are constantly redrawn in light of new social practices and relations.