| Official Poverty | Add EITC | |||||||
| 50% | 100% | 150% | 200% | 50% | 100% | 150% | 200% | |
| Panel A: Married with Children | ||||||||
| Unemployment | 0.253*** | 0.698*** | 0.735*** | 0.960*** | 0.147*** | 0.575*** | Q 711*** | 0.968*** |
| Rate | (0.054) | (0.116) | (0.134) | (0.179) | (0.050) | (0.100) | (0.127) | (0.177) |
| Mean Y | 0.024 | 0.074 | 0.146 | 0.230 | 0.019 | 0.057 | 0.136 | 0.228 |
| Percent change in coefficient due to EITC | -41.9 | -17.6 | -3.3 | 0.1 | ||||
| Observations | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 |
| Panel B: Single with Children | ||||||||
| Unemployment | 1.036*** | 1.941*** | 1.870*** | 1 742*** | 0.979*** | 1 754*** | 1.859*** | 1 770*** |
| Rate | (0.282) | (0.342) | (0.413) | (0.309) | (0.285) | (0.331) | (0.438) | (0.303) |
| Mean Y | 0.186 | 0.354 | 0.507 | 0.631 | 0.166 | 0.302 | 0.464 | 0.614 |
| Percent change in coefficient due to EITC | -5.5 | -9.6 | -0.6 | 1.6 | ||||
| Observations | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 |
| Panel C: Married with Children, SPM Equivalence Scales | ||||||||
| Unemployment | 0.245*** | 0.658*** | 0.735*** | 0.970*** | 0.134** | 0.575*** | 0.757*** | 0.975*** |
| Rate | (0.051) | (0.114) | (0.131) | (0.176) | (0.053) | (0.097) | (0.126) | (0.181) |
| Mean Y | 0.024 | 0.074 | 0.145 | 0.229 | 0.019 | 0.056 | 0.135 | 0.227 |
| Percent change in coefficient due to EITC | -45.3 | -12.6 | 3.0 | 0.5 | ||||
| Observations | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 |
| Panel D: Single with Children, SPM Equivalence Scales | ||||||||
| Unemployment | 1 124*** | 1.949*** | 1.883*** | 1.678*** | 1.141*** | 1.738*** | 1.955*** | 1.664*** |
| Rate | (0.289) | (0.345) | (0.421) | (0.286) | (0.292) | (0.336) | (0.471) | (0.309) |
| Mean Y | 0.188 | 0.359 | 0.511 | 0.635 | 0.168 | 0.306 | 0.472 | 0.618 |
| Percent change in coefficient due to EITC | 1.5 | -10.8 | 3.8 | -0.8 | ||||
| Observations | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 | 1,326 |
Notes: Data are from the CPS ASEC calendar years 1996-2008 and are collapsed at the demographic group, state and year level. Children are defined following the definition for dependent children (same as children for EITC purposes), and EITC eligibility is calculated by the NBERTAXSIM tax calculator. Panels A and B include the results of regressions for being below various multiples of the official poverty threshold; Panels C and D include the results of regressions for being below various multiples of the official poverty threshold for a family of 4 but incorporate the equivalence scales for families of different sizes from the new Supplemental Poverty Measure. All regressions include controls for demographic characteristics, as well as state and year fixed effects. The results are weighted by the weighted total number of families in each cell. The unemployment rate is measured in percentage points. Percent change in the unemployment coefficient due to the EITC is calculated as the percentage change in the coefficient for being below the relevant multiple of the poverty threshold between the specifications for official poverty and official poverty after adding the EITC to income. Standard errors are clustered by state and shown in parentheses. *p < 0.10, **/Œ< 0.05, ***/Œ< 0.01.