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

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Listed:
  • Mammen, Sheila
  • Lawrence, Frances C.
  • St. Marie, Peter
  • Berry, Ann A.
  • Knight, Suzanne Enzian

Abstract

The differences between rural low-income mothers who were participants and non-participants in the Earned Income Tax Credit (EITC) were examined. One-third of the 224 eligible mothers in a multi-state study did not claim the tax credit. Non-participants were more likely to be Hispanic, less educated, with larger families, borrowing money from family, and living in more rural counties. Participating mothers, on the other hand, were more food secure, perceived their household income as being adequate, reported recent improvements in their economic situation, were satisfied with life, and lived in states with a state EITC. Analysis of qualitative data revealed that rural mothers had many misconceptions about the EITC. These findings contribute to family and economic professionals’ understanding of why rural low-income families do not participate in the tax credit and assist in formulating policies and education/outreach efforts that would increase their participation.

Suggested Citation

  • Mammen, Sheila & Lawrence, Frances C. & St. Marie, Peter & Berry, Ann A. & Knight, Suzanne Enzian, 2009. "The Earned Income Tax Credit and Rural Families: Differences between Participants and Non-participants," Working Paper Series 47510, University of Massachusetts, Amherst, Department of Resource Economics.
    • Handle: RePEc:ags:umamwp:47510
    DOI: 10.22004/ag.econ.47510
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    References listed on IDEAS

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    1. Scholz, John Karl, 1994. "The Earned Income Credit: Participation, Compliance, and Antipoverty Effectiveness," National Tax Journal, National Tax Association, vol. 47(1), pages 63-87, March.
    2. Scholz, John Karl, 1994. "The Earned Income Credit: Participation, Compliance, and Antipoverty Effectiveness," National Tax Journal, National Tax Association;National Tax Journal, vol. 47(1), pages 63-87, March.
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    Cited by:

    1. Nicole Simpson & Devin Reilly & Kartik Athreya, 2010. "The Earned Income Tax Credit: Insurance Without Disincentives?," 2010 Meeting Papers 1103, Society for Economic Dynamics.
    2. Nicole Simpson & Jill Tiefenthaler & Jameson Hyde, 2010. "The Impact of the Earned Income Tax Credit on Economic Well-Being: A Comparison Across Household Types," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 29(6), pages 843-864, December.

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