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Urban And Rural Differences In Utilization Of State Earned Income Tax Credit Programs: Minnesota'S Experience

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  • Hirasuna, Donald P.
  • Stinson, Thomas F.

Abstract

This paper examines utilization rates of Minnesota's earned income tax credit program by households on welfare from 1992 through 1999. We examine urban and rural differences in the rate of filing an income tax return and receiving the earned income tax credit. Tabulations show that urban areas have the lowest utilization rates, but are catching up in both income tax filing rates and earned income credit receipt rates. Regression analyses identify correlates to urban-rural differences. A modeling exercise examines how urban and rural households might respond to a 10 percent increase in the credit. Finally, policy suggestions are offered, which are relevant to urban and rural areas and are appropriate for other states.

Suggested Citation

  • Hirasuna, Donald P. & Stinson, Thomas F., 2004. "Urban And Rural Differences In Utilization Of State Earned Income Tax Credit Programs: Minnesota'S Experience," Working Papers 18912, Oregon State University, Rural Poverty Research Center (RPRC).
    • Handle: RePEc:ags:osruwp:18912
    DOI: 10.22004/ag.econ.18912
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    References listed on IDEAS

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    Cited by:

    1. Donald P. Hirasuna & Thomas F. Stinson, 2005. "Rural and Urban Differences in Welfare Exits: Minnesota Evidence 1986–1996," Growth and Change, Wiley Blackwell, vol. 36(3), pages 395-427, June.
    2. Reagan Baughman & Stacy Dickert-Conlin, 2009. "The earned income tax credit and fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(3), pages 537-563, July.
    3. Katie Fitzpatrick & Jeffrey Thompson, 2009. "The Interaction of Metropolitan Cost-of-living & the Federal Earned Income Tax Credit: One Size Fits All?," Working Papers wp204, Political Economy Research Institute, University of Massachusetts at Amherst.

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    Food Security and Poverty;

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