It also provides a summary of the extensive media coverage of the research findings.
In addition, recent ground-breaking research suggests the income from these tax credits leads to benefits at virtually every stage of life. For instance, research indicates that children in families receiving the tax credits do better in school, are likelier to attend college, and can be expected to earn more as adults.
Numerous studies show that working-family tax credits Social policy report on child poverty work effort. The EITC expansions of the s contributed as much to the subsequent increases in work among single mothers and female heads of households as the welfare changes of that period, extensive research has found.
And, by boosting the employment and earnings of working-age women, the EITC boosts the size of the Social Security retirement benefits they ultimately will receive.
In addition, the research shows that by boosting the employment of single mothers, the EITC reduces the number of female-headed households receiving cash welfare assistance.
The EITC may also improve the health of infants and mothers, research indicates. Infants born to mothers who could receive the largest EITC increases in the s had the greatest improvements in such birth indicators as low-weight births and premature births.
Moreover, research suggests that income from the EITC and CTC leads to improved educational outcomes for young children in low-income households.
Children whose families receive more income from refundable tax credits do better in school, are likelier to attend college, and likely earn more as adults; they also are likelier to avoid the early onset of disabilities and other illnesses associated with child poverty, which further enhances their earnings ability as adults, some research suggests.
These working-family tax credits lifted 9. The magnitude of these effects is large: Millions of families are brought above the poverty line, and estimates of the effects on children indicate that this may have extremely important effects on the intergenerational transmission of poverty as well.
Taking all of the evidence together, the EITC appears to benefit recipients — and especially their children — substantially. To claim the credit, a taxpayer must have earnings from a job.
The credit rises with earned income until reaching a maximum which varies by the number of qualified children and then phases out as income rises further. Research strongly suggests that low-income families do not understand how much of their tax refund comes from the EITC or the CTC, but they do understand that if they work they can qualify for significant tax-based benefits.
The EITC is particularly effective at encouraging work among single mothers working for low wages. Single mothers are the group most likely to be eligible for the EITC because they tend to have low earnings and qualifying children. As Figure 1 shows, single mothers experienced a marked increase in paid employment following the EITC expansions of the early s, relative to married women and single women without children.
In addition, women who were eligible to benefit the most from those EITC expansions apparently had higher wage growth in later years than other similarly situated women.
The EITC expansions of the s induced more than a half a million families to move from cash welfare assistance to work, research shows. Higher Social Security benefits, in turn, reduce the extent and severity of poverty among seniors. Changes in health insurance coverage did not seem to be a primary explanation for these improved health outcomes.
They also are more likely to finish high school and go on to college. In addition, larger tax refunds make college more affordable for low-income families with high-school seniors and are associated with significant increases in their college attendance. A recent working paper examining data from before and after changes to federal and state EITCs finds that children receiving larger EITCs tend to do better academically in both the short and long term.
Higher test scores, particularly in math. Larger EITCs are linked to improved test scores in the year of receipt for both elementary and middle-school students. Higher high-school graduation rates. Higher college attendance rates.
The size of these effects is noteworthy. The paper estimates that a child in a family eligible for the largest EITC expansion in the early s would have a 4. Moreover, the findings show that the academic benefits of larger EITCs extend to children of all ages and racial and ethnic groups, with some suggestive evidence that the benefits are slightly larger for minority children and boys.
Researchers who analyzed data for grades from a large urban school district and the corresponding U. Researchers analyzing ten anti-poverty and welfare-to-work experiments found a consistent pattern of better school results for low-income children in programs that provided more income.
The researchers noted that their results have important implications for policies that link increases in income to increases in employment, like the EITC and CTC.
Because higher family income from working-family tax credits is associated with higher skills, children in the family likely earn more as adults. In short, studies indicate that young children in low-income families that receive income support which could include the EITC and CTC perform better in school, on average.
They also are likely to be born healthier and to grow up to work more and earn more. Many Americans work for low wages.
The share of workers paid below-poverty wages hourly wages too low to support a family of four at the poverty line even with full-time, year-round work rose from The share of Americans earning low wages may keep growing even as labor market conditions improve.The Social Mobility and Child Poverty (SMCP) Commission monitors the progress of government and others in improving social mobility and reducing child poverty in the United Kingdom.
Child poverty is a multidimensional phenomenon and can be measured in many ways. It is imperative that governments make a commitment to child poverty reduction, recognizing and responding to child poverty is the first priority, alongside building expertise and improved approaches to child poverty.
WELCOME to the Virginia Department of Social Services. VDSS is one of the largest Commonwealth agencies, partnering with local departments of social services, along with faith-based and non-profit organizations, to promote the well-being of children and families statewide.
1 Compilation of child poverty local indicators update by Donald Hirsch and Laura Valadez, Centre for Research in Social Policy (CRSP), Loughborough University.
Watch the video in français, español, português, and العربية. UNICEF focuses on the critical impact social and economic policy issues have on children. Our work is centered around Global Economic Crisis and Recovery, Child Poverty and Disparities, Social Budgeting and Public Finance.
Abstract: Child poverty is an ongoing national concern, but few are aware that its principal cause is the absence of married fathers in the home. Marriage remains America’s strongest anti.