Open Access Senior Thesis
Bachelor of Arts
© 2013 Anthony J. Barone
In this paper, I analyze the effectiveness of state level Earned Income Tax Credit programs on improving of poverty levels. I conducted this analysis for the years 1991 through 2011 using a panel data model with fixed effects. The main independent variables of interest were the state and federal EITC rates, minimum wage, gross state product, population, and unemployment all by state. I determined increases to the state EITC rates provided only a slight decrease to both the overall white below-poverty population and the corresponding white childhood population under 18, while both the overall and the under-18 black population for this category realized moderate decreases in their poverty rates for the same time period. I also provide a comparison of the effectiveness of the state level EITCs and minimum wage at the state level over the same time period on these select demographic groups.
Barone, Anthony J., "State Level Earned Income Tax Credit’s Effects on Race and Age: An Effective Poverty Reduction Policy" (2013). CMC Senior Theses. 771.
African American Studies Commons, Applied Statistics Commons, Business Law, Public Responsibility, and Ethics Commons, Categorical Data Analysis Commons, Community-Based Research Commons, Econometrics Commons, Labor Economics Commons, Longitudinal Data Analysis and Time Series Commons, Political Economy Commons, Race and Ethnicity Commons, Statistical Models Commons