Significant racial and ethnic achievement gaps exist between students in the U.S. by elementary school, although the underlying causes for these achievement gaps differ. One factor for racial/ethnic achievement gaps is between-group differences in socioeconomic status (SES), particularly exposure to poverty. Moreover, other factors contributing to…

Higher education has experienced many changes since the 1970s, including an increase in the price of college, an increase in student employment during college, a decrease in college completion rates, and an increase in time to degree. This paper ties these trends together by causally linking changes in financial aid with time to degree and student…

This study examined Earned Income Tax Credit (EITC) participation among rural, low-income families, by income level, and investigated whether nonparticipation corresponds with increased financial distress. Rates of EITC participation among 314 rural low-income mothers were lower than national averages, especially among the lowest earners. There…

Family income is an important factor associated with children's educational achievement. However, key areas of UK research (for example, on socially segregated schooling) and policy (for example, the allocation of funding to schools) rely on children's free school meal (FSM) "eligibility" to proxy family income. This article examines the…

This Statistics in Brief applies IRS rules and data to a nationally representative sample of 2007-08 undergraduates to estimate who received education tax benefits and looks at the extent to which these benefits shaped their price of college attendance. Key findings include: (1) Nearly one-half of all 2007-08 undergraduates were estimated to have…

Holding a bank account is crucial to the income-maximizing and asset-building of households. This study uses 2008 survey data of EITC-eligible households assisted at Volunteer Income Tax Assistance (VITA) sites to document their tax filing behavior and use of Alternate Financial Services (AFS). Specifically, the differences in tax filing and AFS…

Past estimates of the effect of family income on child development have often been plagued by endogeneity and measurement error. In this paper, we use two simulated instrumental variables strategies to estimate the causal effect of income on children's math and reading achievement. Our identification derives from the large, non-linear changes…

This report identifies overall tax burdens faced by low income families, explaining how those burdens would change if certain types of federal income tax cuts were enacted. Using detailed household-level data on incomes and taxes, the report shows how federal income and payroll taxes differ for low income families and how these families benefit…

Examination of data from the National Longitudinal Survey of Youth found that a woman's wages relate positively to early return to work after childbirth; higher family income delays return; income did not affect child care choice; greater child care tax credits increased early return; and tax credits did not affect child care choice, but predicted…

Researchers asked 316 public school parents how they would respond if government money, such as a tuition tax credit, was provided to help send their children to private schools. Results suggest that if tuition tax credits are made available, the public school population will tend to shift further toward lower-income families. (MJL)

With data from the Survey of Income Program Participation, a structural model analyzed decision to use child care of married and single mothers. Simulations indicated that a refundable child care tax credit would distribute child care benefits more equally and would also increase labor force participation of mothers. (SK)

A study of the impact of the Hope Scholarship, a federal program that gives families of college students a tax benefit, has had in Georgia found that the college attendance rate has increased. However, the gap between blacks and whites and between those from high- and low-income families has widened. (JOW)

This report compares income trends among Hispanic Americans and non-Hispanic Americans over the 1980s and assesses the effect on Hispanics of recent tax proposals that would primarily benefit wealthy Americans. Since the early 1970s, the income gaps between rich and poor families, and between rich and middle-income families, have widened…

Data from 971 mothers suggested that (1) price is critical in child care choice; (2) parents do not consistently select high quality care; and (3) mothers with higher wages and families with higher incomes prefer center care. Vouchers, reduced fees, or tax credits consistently increase use of day care centers. (SK)

Key factors influencing the decision to attend private school are identified in this paper. It looks at the factors accounting for varying rates of private school attendance and estimates the responsiveness of such attendance to government support. It studies the variation in private school attendance rates at three levels: across states, across…