Do single mothers in the United States use the Earned Income Tax Credit to reduce unsecured debt?

The Earned Income Tax Credit (EITC) is a refundable credit for low-income workers mainly targeted at families with children. This study uses the Survey of Income and Program Participation’s topical modules on Assets and Liabilities to examine associations between the EITC expansions during the early 1990s and the unsecured debt of the households of single mothers. We use two difference-in-differences comparisons over the study period 1988–1999, first comparing single mothers to single childless women, and then comparing single mothers with two or more children to single mothers with exactly one child. In both cases we find that the EITC expansions are associated with a relative decline in the unsecured debt of affected households of single mothers. While not direct evidence of a causal relationship, this is suggestive evidence that single mothers may have used part of their EITC to limit the growth of their unsecured debt during this period.     

The Earned Income Tax Credit and Rural Families: Differences Between Non-participants and Participants

Differences between rural low-income mothers who were non-participants and participants in the Earned Income Tax Credit (EITC) were examined. About one-third (35%) of the 224 eligible mothers in a multi-state USDA study, Rural Families Speak, did not claim the tax credit. The EITC non-participants were more likely to be Hispanic, be less educated, have larger families, perceive their income as being inadequate, live in more rural counties, and possess little understanding of the EITC. Participating mothers were more likely to be single, food secure, and satisfied with life. Analysis of qualitative data revealed that the mothers had many misconceptions about the EITC. These findings assist in formulating policies and outreach efforts that may increase rural low-income families’ EITC participation.     

The effect of child support on the labor supply of custodial mothers participating in TANF

Child support is a critical source of income, especially for the growing proportion of children born to unmarried mothers. Current social policy supports custodial parent employment (e.g., the Earned Income Tax Credit [EITC] and other work supports have largely taken the place of an entitlement to cash assistance for single mothers of young children). Given many single mothers' limited earnings potential, child support from noncustodial fathers is also important. This raises questions about the effects of child support on custodial mothers' labor supply, and whether policies that increase child support receipt will thereby discourage mothers' employment. This paper addresses these questions, taking advantage of data from a statewide randomized experiment conducted in Wisconsin. Unlike previous nonexperimental research, we do not find any negative effect of child support on the likelihood to work for pay or the number of hours worked in a given week. Recent U.S. social welfare policies have focused on increasing both custodial mothers' child support collections and their labor supply. The results suggest that these may be compatible policies; the absence of a negative labor supply effect strengthens the potential antipoverty effectiveness of child support.     

The labor supply effects of child care costs and wages in the presence of subsidies and the earned income tax credit

This paper uses CPS and SIPP data between 1990 and 2004 to examine the effects of child care expenditures and wages on the employment of single mothers. It adds to the literature in this area by incorporating explicit controls for child care subsidies and the EITC into the estimation. Doing so provides an opportunity to examine mothers’ sensitivity to prices and wages net of policies that influence these amounts. Results suggest that lower child care expenditures, higher wages, and more generous subsidy and EITC benefits increase the likelihood of employment. Allowing the impact of child care subsidies and the EITC to vary with expenditures and wages reveals substantial heterogeneity. In particular, the largest labor supply effects of child care subsidies are generated for mothers with higher child care costs, while the largest labor supply effects of the EITC are found for mothers with lower wages.     

WHY ARE U.S. WOMEN DECREASING THEIR LABOR FORCE PARTICIPATION IF THEIR WAGES ARE RISING?

Given the traditional interpretation of women's labor force participation rate (LFPR) trends as movements along a positively sloped labor supply curve, it is surprising that the recent downward trend in U.S. women's LFPR has occurred over a period when women's real wages were commonly believed to be rising. I find that almost two‐thirds of the decline since 2000 is attributable to aging of the adult female population. The remainder, due to declining labor force participation for women under 55, becomes less puzzling in light of my evidence that the wage/education locus faced by women actually may have worsened since 2000. (JEL J21, J31, J82)     

Income Mobility and the Earned Income Tax Credit

Households who work full-time at minimum wage jobs earn more than the phasein range of the Earned Income Tax Credit (EITC). This means that the EITC mainly acts as a negative income tax. However, most families are eligible to receive the EITC for a relatively short time. Seventy-four percent of new EITC families will lose their eligibility in two years or less. Sixty-one percent of families already on the EITC will lose their eligibility in three years or less. EITC families are much more mobile than AFDC families. The main reason that families gain or lose EITC eligibility is changes in earnings.     

Non-income effects of welfare receipt on early childhood cognitive scores

Child poverty in America has become an enduring part of the social landscape that many families must navigate. As prior research has established that income transfers can affect child outcomes, we focus our attention on the conditions under which these transfers occur. Using panel data from the Fragile Families and Child Wellbeing Study, we examine the non-income effects of TANF participation on children's early cognitive development using methods to address statistical concerns about endogeneity and selection. Our results indicate that participating in TANF is negatively associated with cognitive development. Furthermore, we are able to identify maternal stress as a viable causal pathway between TANF receipt and cognitive development, a result that we are unable to replicate with a falsification test involving the Earned Income Tax Credit (EITC). Our results suggest that the structure of cash transfers may have effects on early childhood outcomes.     

World and regional labour force trends and prospects

Changes in fertility during 1970-1985 will not have any effect on the composition of the world work force until 1985 because the people who will be of working age at that time have already been born. However, fertility for this period will directly influence the size of the age group 15-30 in the year 2000. Moreover, fertility trends for this period will have an indirect effect on participation of women in the labor force. The number of people in the labor force has proportionately followed total population. Just as total population is projected to increase in the single decade 1970-1980 by an amount equal to its size in 1750, so the labor force will increase by 360 million during the 1980's (its original size in 1750). By the end of the present century the world labor force may well number some 2,6000 million, reaching 3,000 million by the year 2010; 4,000 million by 2030; 5,000 million by 2070; and stabilizing at about 5,200 million by the end of the 21st century. There will be great regional variations. Increases will range from 20-35% in Europe and the U.S.S.R. to 100-120% in South Asia, Africa, and Latin America. For East Asia and North America the increases may amount to 60% by the year 2000 and 100% by 2050. In 1970 less developed regions had 2/3 the world's labor force; by 2000 they will have 3/4. In 1970 about 20% of the labor force in more developed regions were working in agriculture while in less developed regions 2/3 were so engaged. In other terms, in more developed regions 10 farmers supported 108 persons while in less developed regions 10 farmers supported only 38. According to Food and Agriculture Organization projections, by 2000 only 3.5% of the labor force in developed regions and 43.5% in less developed regions will be in agriculture. Differences in gross national product between regions is striking. In 1970 the less developed regions contained 70% of world population, 67% of the world labor force, 87% of the world agricultural labor, and produced 15% of its wealth. There are also sharp contrasts in participation in the labor force. In less developed countries more youths and older persons are in the labor force while in developed countries more women work. By the year 2000 female activity rates in more developed regions will increase for ages 20-64 and decrease for those under 20 and over 64. This will raise female participation in the labor force to 35%. In less developed regions female participation is expected to decline. The proportion of young workers is expected to increase in less developed and decline in more developed regions; the same will be true for older workers. The dependency burden will be concentrated among the young in less developed nations; in more devel oped regions there will be larger numbers of older dependents.     

Employment Population Age-Share Differences: An International Comparison of the Economic Impact of Population Aging

International comparisons of the economic impact of population aging across nations can give valuable insights regarding which policies are most effective in addressing aging-related economic issues. Traditional old-age dependency ratios, by not accounting for differences in labor force participation rates, can be misleading. A new measure, the difference between an age group's share of total employment and its share of the total adult population, is developed and shown to be empirically sensitive to different policy actions. The analysis is built upon readily available and comparable International Labour Organization age-group data on population and labor force participation rates.     

The nonprofit leadership deficit: A case for more optimism

Recent headlines claim that a looming nonprofit leadership crisis will soon be precipitated by retiring baby boomers. Analysis of baby boom demographics, using national census data on the age distribution and other demographic characteristics of top leaders by sector, confirms the aging nonprofit workforce. However, the issue of whether the aging workforce portends a nonprofit leadership crisis, when analyzed within a theoretical framework of supply and demand in the market for nonprofit executives, reveals flaws in most commentaries about the leadership crisis. Workings of the labor market and nonprofit organizations themselves suggest trends that could be expected to affect labor supply and demand and mitigate a leadership deficit. Reasonable—and likely—market and organizational adjustments, including higher executive pay, increased labor force participation of older workers, skill acquisition of younger workers, possible consolidation of nonprofit organizations, board and volunteer skill sharing, and even venture philanthropy, can be expected to moderate the shock of baby boom retirements, much in the way that schools, job markets, and housing markets have accommodated the movement of this “bulging” generation through earlier decades of their lives.     

Household job search: A theoretical and empirical model

This article links the literature on family decision making and the economics of job search by examining job search by an unemployed individual within a household context. A theoretical model was developed which demonstrates the interdependence of the utility of household members when one is searching for work. The costs of search are borne by all household members while the benefits are captured in the searcher's expected future wage. A reservation wage was shown to be determined by household financing options, and the perception of relevant labor market parameters. An empirical model of the reservation wage for a sample of unemployment insurance recipients was estimated using two-stage least squares. Results, reported for male and female subgroups, support the hypotheses derived from the household job search model. In particular, the reservation wage was shown to depend on unemployment duration, labor market conditions, increased labor force participation of other household members, use of household assets to finance search, existence of dependents, and unemployment insurance benefits.     

The effects of separate taxation on labor participation of married couples. An empirical analysis using propensity score

Up to 1987 the Spanish Income Tax imposed compulsory joint filing for married couples. However, the 1988 reform allowed spouses to choose between joint and separate taxation, involving a reduction in tax rates for secondary earners. Our aim is to analyze this reform as a quasi-natural experiment, assessing the effects of tax changes on labor participation. To find out the causal effect we adopt the difference-in-differences technique. We use data from the ‘Spanish Income Tax Panel 1982–1998’. Our results show that, as a consequence of differential tax changes, married women in families more strongly affected by the fiscal reform increase their labor participation more than secondary earners from families less affected by the reform. The participation rate for secondary earners in the treatment group increases by 9.4 percentage points whereas the control group increases their participation rate by 7.8 percentage points. We define the treatment group as those secondary earners in relatively low-income families in year 1987 and the control group as those in middle-high income families, because the former experiences a stronger reduction in tax rates than the latter. As a result, we can attribute the 1.6-percentage-point-increase in participation rates to the 1988 income tax reform.     

Personality and labor force participation across the life course: A longitudinal study of women's careers

The influences on and consequences of women's labor force experience are examined using data from members of the Berkeley longitudinal studies born between 1920 and 1929. In adolescence, these women were overwhelmingly oriented toward marriage and family rather than career, yet more than two-thirds eventually spent substantial time in the paid labor force. Consistent labor force participation was lower for women who had been attractive, outgoing, feminine, self-confident, and status seeking in their high school years. High labor force participation, however, was associated with increases in self-confidence, status seeking, assertiveness, and intellectual investment between adolescence and later adulthood. The demographic correlates of labor force participation changed over the life course: as family responsibilities diminished in the later middle years, both family composition and husband's occupational status decreased in importance, while the importance of a woman's own education level and her husband's expected retirement income increased.     

Are immigrants and natives perfect substitutes in production?

This article discusses whether immigrant and native labor are perfect substitutes in production when conventional measures of skill and demographic characteristics are held constant. The ratio of immigrant to native labor and the ratio of immigrant to native earnings are studied in 5 major immigrant receiving countries with other variables held constant. Countries included are 1) the US and Britian, where the foreign born are only about 5% to 6% of the adult male labor force; 2) Canada and Australia, where they are about 20% and 30%, respectively; and 3) Israel, where the foreign born are about 3/4 of the Jewish adult male labor force. The relative earnings of adult male immigrants and the adult male native-born sons of immigrants are found to be lower when the labor supply of immigrants is greater. The estimated elasticity of substitution between immigrant and native labor is high, but significantly less than infinity. Workers who are relatively more intensively in the favorable self selection characteristics of immigrants are not perfect substitutes for workers relatively more intensive in country-specific skills. As immigrants increase in the labor force, their relative earnings tend to fall, although the decline is small. Economies have sufficiently flexible markets and develop institutional arrangements to mitigate the relative fail in immigrant earnings as their relative supply increase.     

家庭结构视角下新生代农民工劳动参与影响因素

农村劳动力供给特别是新生代农民工的劳动参与率是影响经济和社会发展的关键变量。运用Probit和IV Probit模型考察家庭结构对新生代农民工劳动参与率的影响及其机制发现:多代同堂的家庭结构对新生代农民工的劳动参与存在负效应。从性别看,女性新生代农民工劳动参与受家庭结构影响的程度大于男性。因此,重视新生代农民工家庭特征差异,配套采取多种措施促进新生代农民工参与市场劳动,是解决"民工荒"与"就业难"的着力点。     

Participation Structures as a Mediational Means: Learning Balinese Gamelan in the United States Through Intent Participation,Mediated Discourse,and Distributed Cognition

Participation has presented a complex unit of analysis for interactional sociolinguistics. In this study I add another dimension to participation by considering recent theories related to sociocultural activity theory—mediated discourse analysis and distributed cognition. Drawing on examples from maguru panggul, the traditional pedagogy of Balinese Gamelan music, I argue that participation structures are a mediational means that enable students to augment their learning. Focusing on two participation structures that involve keen observation and listening-in, I also consider how intent participation is a part of these participation structures and maguru panggul pedagogy. What emerges is an understanding of how participation structures used as mediational means can have an effect on the division of cognitive labor within a classroom.     

Female employment and fertility: a study based on Chilean data

Conflicting studies bring into question the hypothesis that increased employment opportunities for women in the modern sector would reduce the population growth rate. To help clarify the situation, data from about 4000 families in central Chile, obtained from interviews in 1965, are used to test 3 hypotheses: 1) that in the traditional sector of the economy, young children do not adversely affect the mother's labor force participation; 2) that in the modern sector, child care reduces labor force participation unless there are relatives or older children to look after the young children; and 3) that young children also have a positive influence on female employment in that they increase the need for added income. This would be particularly true in the traditional sector where average household income is lower. All hypotheses were proved true by the data. Furthermore, the positive effect on the mother's employment of a larger family size proved to be true in the modern sector as well as the traditional sector. The study indicates that if a country's objective is to lower the population growth rate, a population planning program relying on higher rates of fe male employment will have to be accompanied by other socioeconomic policies intended to achieve a higher level of economic development.     

Opting Out,Scaling Back,or Business‐as‐Usual? An Occupational Assessment of Women's Employment

After decades of growth, women's labor force participation stagnated in the 2000s, prompting widespread interest in work–family balance and opting out. However, much of the research and media attention is limited to small samples of women in managerial and professional occupations. Using data from the 2009 American Community Survey, this article examines mothers' labor force participation and work hours across 92 occupations to assess whether mothers in nonmanagerial and nonprofessional occupations exhibit similar work patterns. I find that mothers in managerial and professional occupations are the least likely to remain out of the labor force but most likely to work reduced hours. The results indicate that there is significant occupational variation in women's work–family strategies, and these comparisons provide insight into the differential structures of disadvantage that encourage different work–family outcomes.     

Does the minimum wage drive teenagers out of the labor force?

Labor force participation is directly related to the value of being in the labor force. The effect of the minimum wage on labor force participation thus measures how the minimum wage affects the welfare of labor force participants. In contrast, a decline in employment tells us little about welfare, because of the offsetting wage increase. Only changes in labor force participation can directly measure the welfare effects of the minimum wage. Despite this, most literature about the minimum wage has been focused on employment. My empirical results show that the minimum wage has a significant negative effect on teenage labor force participation. Thus, a minimum wage reduces the value of entering the labor market.