Examining the Effect of State TANF and EITC Spending on Employment Among Black and White Single Mothers
摘要
Purpose – To find the effect of the state income support regime on the employment of black and white single mothers. Methods – We use CPS-ASEC data from 1998 to 2018, supplemented with various state-level data, to create repeated cross-sectional data at the individual level over 20 years. We use binomial logistic regression to estimate the effect of the generosity of TANF and EITC at the state level on employment outcomes for black and white single mothers. Results - We do not find a statistically significant effect of generous state spending on work support on employment outcomes. The state supplement to EITC does not have a statistically significant effect on employment. Demographic factors, specifically race and education, affect employment. Divorced and widowed mothers are less likely to be employed compared to never-married single mothers, indicating that these mothers may need more support to get into the labor market after the loss of a spouse. Conclusion – If states provide generous income support, it may overcome the potential negative effect of race on employment outcomes. Race continues to dominate employment outcomes for single mothers. However, since education improves the likelihood of employment, states could invest in education initiatives targeted at single mothers to help them find employment.