APPENDIX

Do Single Mothers in the United States use the Earned Income Tax Credit to Reduce Unsecured Debt?

March 5, 2012

H. Luke Shaefer

Xiaoqing Song

Trina R. Williams Shanks

Table A.1
Total Household Unsecured Debt of Single Women Age 19-55, 1988-1999
Means 2005$
Year / Mothers / Childless Women / (1) – (2)
(1) / (2) / Mothers / Childless Women / (4) – (5)
(4) / (5)
(1) / (2) / (3) / (4) / (5) / (6)
All Single Women / Low-educated Single Women
1988 / $3,080 / $4,738 / -$1,658 / $1,929 / $3,218 / -$1,289
(334) / (305) / 65% / (322) / (236) / 60%
1991 / 3,168 / 5,486 / -2,318 / 2,130 / 3,261 / -1,131
(276) / (282) / 58% / (221) / (261) / 65%
1993 / 3,164 / 5,020 / -1,856 / 2,741 / 2,990 / -249
(428) / (271) / 63% / (650) / (163) / 92%
1995 / 3,263 / 5,421 / -2,158 / 1,742 / 3,320 / -1,578
(338) / (317) / 60% / (162) / (348) / 52%
1996 / 3,895 / 7,778 / -3,883 / 2,560 / 6,436 / -3,876
(187) / (724) / 50% / (254) / (1,860) / 40%
1997 / 4,326 / 6,903 / -2,577 / 2,599 / 4,509 / -1,910
(295) / (282) / 63% / (220) / (278) / 58%
1999 / 4,181 / 7,852 / -3,671 / 2,728 / 4,716 / -1,988
(288) / (510) / 53% / (249) / (247) / 58%
Household Heads / Single Mothers by Number of Children
Mothers / Childless Women / (7) – (8)
(7) / (8) / 2+ Children / 1 Child / (10) – (11)
(10) / (11)
(7) / (8) / (9) / (10) / (11) / (12)
1988 / 2,747 / 3,682 / -$935 / 2,283 / 3,764 / -$1,481
(330) / (251) / 74% / (383) / (431) / 61%
1991 / 2,796 / 4,443 / -1,647 / 2,710 / 3,585 / -875
(300) / (247) / 63% / (291) / (440) / 76%
1993 / 2,516 / 3,957 / -1,441 / 2,589 / 3,708 / -1,119
(316) / (227) / 64% / (255) / (858) / 70%
1995 / 3,379 / 4,518 / -1,139 / 3,105 / 3,428 / -323
(417) / (324) / 75% / (493) / (370) / 91%
1996 / 3,208 / 7,180 / -3,972 / 3,046 / 4,671 / -1,625
(167) / (1,264) / 45% / (274) / (233) / 65%
1997 / 3,749 / 5,833 / -2,084 / 3,173 / 5,383 / -2,210
(358) / (282) / 64% / (310) / (453) / 58%
1999 / 3,621 / 6,093 / -2,472 / 3,384 / 4,922 / -1,538
(337) / (294) / 59% / (444) / (327) / 69%
Source: Authors’ calculations from a pooled sample of the SIPP Assets and Liabilities topical modules. All estimates are weighted. Standard errors are clustered by state.
Table A.2
IHS Models: Calculated Average Values of Real Unsecured Debt and IHS Estimates
All single women
(Mean) / IHS estimates / IHS D-D derivatives / IHS derivatives
(1) / (2) / (3) / (4)
all single women / All single women
Single Mother*1988 / 4157.331 / -0.622*** / -2585.17 / -2585.17
Single Mother*1991 / 4713.052 / -0.177 / -835.87 / -3421.04
Single Mother*1993 / 4308.869 / -0.011 / -49.00 / -2634.17
Single Mother*1995 / 4613.058 / -0.298* / -1373.99 / -3959.17
Single Mother*1996 / 6346.763 / -0.348** / -2210.66 / -4795.84
Single Mother*1997 / 6009.752 / -0.250 / -1504.39 / -4089.57
Single Mother*1999 / 6637.712 / -0.154 / -1021.86 / -3607.03
Single mothers / IHS estimates / IHS D-D derives / IHS derivatives
Single mothers / Single mothers
2 more children*1995 / 3046.075 / -0.889*** / -2707.77 / -2707.77
2 more children*1988 / 3091.214 / 0.080 / 246.92 / -2460.85
2 more children*1991 / 3093.679 / 0.380 / 1177.08 / -1530.69
2 more children*1993 / 3221.334 / 0.218 / 703.82 / -2003.95
2 more children*1996 / 3788.506 / -0.108 / -407.86 / -3115.63
2 more children*1997 / 4319.465 / 0.134 / 577.49 / -2130.28
2 more children*1999 / 4168.098 / -0.113 / -471.43 / -3179.20
Source: Authors’ calculations from a pooled sample of the SIPP Assets and Liabilities topical modules. Sample restricted to single mothers and single childless women, 19-55.
Notes: IHS D-D estimates are calculated using ∂y∂x=y2+1*β, where, y is the real values of unsecured debt and x is independent variable. All models include region controls. Standard errors in parentheses.
*** p<0.01, ** p<0.05, * p<0.1