The Interaction Between the Minimum Wage and the Federal EITC

In this fact sheet, authors Andrew Schaefer, Jessica Carson, Marybeth Mattingly, and Andrew Wink examine the interaction between the minimum wage and the federal Earned Income Tax Credit (EITC) to determine whether a minimum wage increase would produce gains in the sum of earnings plus EITC dollars for low-income workers. They report that for workers earning the minimum wage, an increase would result in higher income; none would experience a lower net income due to changes in the federal EITC credit (though this may be offset by loss of other safety net program benefits). For some family types, increased income would come primarily from a higher minimum wage; for others, gains would also come from the higher-value federal EITC triggered by their higher earnings

Three in Ten Rural and Urban Medicaid Recipients May Be Affected by Potential Work Requirements

In this fact sheet, authors Andrew Schaefer and Jessica Carson explore whether rural and urban Medicaid recipients would be differentially affected by a work requirement. They focus on Medicaid recipients through a rural/urban lens because rural adults differ from their urban counterparts on a host of demographic characteristics. They report that about three in ten Medicaid recipients could be affected by a work requirement, a share that is similar in rural and urban places. Among Medicaid recipients potentially affected by a work requirement, the majority worked at least part of the previous year or were motivated to work but could not find a job, a share that is slightly higher in rural places than in urban. The especially high share of those already working or looking for work in rural places may warrant additional consideration from legislators representing rural areas. In both rural and urban places, legislators should consider whether the consequences to families losing health insurance coverage outweigh the relative benefits of enforcing work requirements

Data Snapshot: Declines in Child Poverty Continue in 2017

The official poverty measure indicates that child poverty declined by 1.1 percentage points between 2016 and 2017, according to analyses of the latest American Community Survey data released today. By 2017, child poverty across the nation was still 0.4 percentage point higher than before the Great Recession. Child poverty remained higher in cities and rural places than in the suburbs. For the first time, rates in cities dipped below the pre-recession level, although poverty is still slightly higher in rural and suburban places than in 2007

Data Snapshot: Poverty Estimates for New Hampshire Counties

On October 20, 2017, the U.S. Census Bureau made available estimates of poverty and other indicators for 2016 for small geographic areas. In considering these data from the American Community Survey (ACS), it is important to pay close attention to the margins of error (MOE) before reaching any conclusions—especially when doing comparisons such as comparing poverty rates between counties and years

Data Snapshot: EITC Continues to Reach Families in Poor Places

Recent proposals in the House and Senate focus on amplifying the Earned Income Tax Credit (EITC)—a refundable tax credit for low-income workers—to compensate for growing wage inequity. Authors Andrew Schaefer, Marybeth Mattingly, Kennedy Nickerson, and Jessica Carson find that the share of EITC filers who are families with children is especially high in the poorest counties, including many places throughout the South

Overall Declines in Child Poverty Mask Relatively Stable Rates Across States

In this brief, authors Andrew Schaefer, Jessica Carson, and Marybeth Mattingly use Census data released on September 15, 2016, from the American Community Survey--the only regular source for estimating yearly child poverty rates at, and below, the state level--to examine child poverty rates across the United States by place type, region, and state. They report that between 2014 and 2015, child poverty declined nationwide across rural areas, suburbs, and cities. As before, cities had the highest child poverty, followed closely by rural areas. Suburbs had the lowest rates. In thirteen states, child poverty declined since 2014; only Mississippi saw an increase since 2014, and the remaining thirty-six states and the District of Columbia had stable rates. Mississippi, New Mexico, and Louisiana had exceptionally high child poverty rates, each over 28 percent. New Hampshire child poverty was among the lowest nationwide, at 10.7 percent. It is important to keep in mind that most states experienced no change between 2014 and 2015. Lower child poverty rates appear to be driven by higher median incomes over the past year

Cause for Optimism? Child Poverty Declines for the First Time Since Before the Great Recession

New data released on September 18, 2014, by the U.S. Census Bureau indicate that child poverty fell by 0.4 percentage point between 2012 and 2013, to 22.2 percent. Though still significantly higher than in 2007 when the Great Recession hit (18.0 percent), and higher than at its conclusion (20.0 percent) in 2009, the decline from 2012 may be cause for optimism. Estimates suggest the number of poor children declined by roughly 300,000 between 2012 and 2013

Child Care Costs Exceed 10 Percent of Family Income for One in Four Families

In this brief, authors Marybeth Mattingly, Andrew Schaefer, and Jessica Carson analyze families’ child care expenses and identify, among families with young children who pay for child care, the share that are “cost burdened,” defined in this context as spending more than 10 percent of their gross income on child care. Using data from the 2012–2016 Current Population Survey, they present their findings by number of children; age of youngest child; parental characteristics; family income measures; and U.S. region, metropolitan status, and state. They report that about one in four families with young children who have child care costs are “burdened” by the cost, spending more than 10 percent of family income on child care. Across families with young children, an average of 8.8 percent of family income is spent on child care. More than half of poor families with young children are cost burdened by child care, compared to 39.3 percent of low income families (those with incomes between one and two times the poverty threshold) and just 13.4 percent of families at or above five times the poverty threshold. One in five married couples, and two in five single parents with young children and child care expenses, pay more than 10 percent of their income on these costs. Access to quality, affordable child care is critical for American working families

2016 Child Poverty Rate Sees Largest Decline Since Before Great Recession

Child poverty declined by 1.2 percentage points between 2015 and 2016, according to analyses of the official poverty measure (OPM) in the latest American Community Survey