[NIFL-POVRACELIT:421] JCPR Working Papers

From: Mary Ann Corley (macorley1@earthlink.net)
Date: Tue Feb 27 2001 - 16:38:18 EST


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Subject: [NIFL-POVRACELIT:421] JCPR Working Papers
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FYI:
The Joint Center for Poverty Research has announced the following working
papers, available on-line.  Following the working papers summaries is a
summary of a policy brief on Earned Income Tax Credit in Illinois.

-Mary Ann Corley
*************************

Working Papers:

a.  Immigrants and Wealth Stratification In The U.S - Lingxin Hao
This study examines the importance of including immigrants in studies of
wealth stratification by race-ethnicity in the United States.  The
descriptive analysis shows greater differences in wealth distribution, zero
and negative wealth holdings, wealth components, and age-wealth profiles by
race-ethnicity than by immigrant status. The age-wealth profiles are steeper
for immigrants than for the native-born when "wealth age" is used. The
multivariate analysis uses a framework integrating life cycle theory, status
attainment theory, human capital theory, and theories related to social
contexts. This study finds a positive effect of immigrant status on wealth
accumulation, in contrast to the impairing effects of race-ethnic
minorities. Immigrants' migration and adaptation history also plays a role
in their wealth accumulation. Implications for social stratification,
spatial segregation, and immigrant assimilation are discussed.
http://www.jcpr.org/wp/WPprofile.cfm?ID=235


b.  Child Support Enforcement: Incentives and Well-Being - Irwin Garfinkel,
Theresa Heintze, Chien-Chung Huang
Economic theory suggests that enforcement of private child support
obligations will decrease the labor supply of mothers who are not potential
welfare recipients, increase the labor supply of mothers who are potential
welfare recipients, increase the labor supply of fathers, decrease
non-marital births, and increase or decrease divorce and remarriage of both
parents.  This paper reviews and synthesizes existing literature on these
behavioral effects and presents new empirical evidence on the effects of
stronger enforcement on the incomes of mothers and their children.
http://www.jcpr.org/wp/WPprofile.cfm?ID=234


c.  The Earned Income Tax Credit and Labor Market Participation of Families
on Welfare - V. Joseph Hotz, Charles H. Mullin, John Karl Scholz
In this paper the authors examine the effect of the EITC on the employment
rates of adults who received welfare (AFDC) during the 1990s. The first part
of the paper begins with a description of the changes in the EITC over the
last ten years, its administration, and what is known about its welfare
policy changes, earned income tax credit (EITC) increases in 1990 and 1993,
and changes in local labor market conditions on the behavior of families who
received welfare benefits in California during the early part of the 1990s.
The authors use a variety of county-level labor market indicators to account
for the influence that the local labor market had on the employment rates of
heads of households in the CWPDP sample.
http://www.jcpr.org/wp/WPprofile.cfm?ID=233


d.  Determinants and Consequences of Child Care Subsidy Receipt by
Low-Income Families - David Blau, Erdal Tekin
This paper provides an early analysis of child care subsidies under welfare
reform. We review the literature on child care subsidies and discuss the
potential for such subsidies to be an effective part of the effort to make
low-income families economically self-sufficient. Previous studies of child
care subsidies use data from the pre-welfare-reform period, and we discuss
the potential difficulties in drawing inferences from those studies that can
be applied to the very different post-reform environment.  The authors use
the data to address two issues. First, how do household characteristics and
state subsidy rules and expenditure affect the likelihood of receiving a
subsidy? Key household characteristics include family size and structure,
and past participation in welfare. Second, how does subsidy receipt affect
employment and welfare participation?
http://www.jcpr.org/wp/WPprofile.cfm?ID=232


e.  Welfare Reform and Child Well-being - Greg J. Duncan, P. Lindsay
Chase-Lansdale
In this paper the authors sort through conflicting theory and evidence
regarding the impacts of welfare reform on children's well-being and
development. Their conclusions regarding likely child impacts depend
crucially on the ages of the children studied. In the case of
elementary-school children, the picture is fairly positive. There is strong
evidence that welfare reform can be a potent force for enhancing achievement
and positive behavior. When welfare reform packages do not appear to help
younger children, there is little evidence of harm, even in the one
experiment with time limits. If anything, the beneficial impacts are
strongest for children in families with longer histories of welfare receipt.
On the other hand, in the case of adolescents, more limited evidence
suggests that welfare reforms may cause detrimental increases in school
problems and risky behavior. The jury is still out on impacts on infants and
toddlers.
http://www.jcpr.org/wp/WPprofile.cfm?ID=236



New Policy Brief in the Illinois state Earned Income Tax Credit

The Joint Center for Poverty Research and Illinois State Representative
Barbara Flynn Currie (D) and Illinois State Senator William E. Peterson (R)
co-sponsosred a one-day legislative research briefing February 2, 2001, on
progress among states, and especially Illinois, in implementing state EITCs.
This JCPR Policy Brief reports on the findings of that briefing, focusing on
Illinois's income tax system and the effects of the federal EITC on work and
marriage among low-income mothers, and also presents an overview of various
state EITC plans.
http://www.jcpr.org/policybriefs/vol3_num1.html



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