Poster Paper: Saving Behaviors of EITC and Non-EITC Eligible Families

Saturday, November 9, 2013
West End Ballroom A (Washington Marriott)

*Names in bold indicate Presenter

Carletta Taylor Sims, Indiana University
This paper utilizes data from the Survey of Consumer Finances (SCF) to measure the differences in saving behaviors of EITC eligible versus non-EITC eligible households.  A “Saving Index” is created based upon various saving factors to create Hi, Med and Lo saving categories.  Logistic regression models are then estimated to test a household’s status as “Hi” or “Lo” saving, based upon index, measuring various household characteristic (including educational level of the head, age, gender, marital status, number of children and debt) impacts on the likelihood of a household being Hi or Lo saving for both EITC eligible and non-EITC eligible households.  Various economic factors, including employment rate, wage, and the personal savings rate are also measured for explanatory impacts.  Characteristic differences between EITC eligible and non-EITC eligible households are then charted for comparison within Saving Index category in attempt to pinpoint factors motivating saving behaviors.