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  • This thesis deals with three aspects of poverty and inequality--deriving data on long-run trends in inequality; analyzing the relationship between inequality and trust; and exploring the effect of the Earned Income Tax Credit (EITC) on hourly wages. Chapter 1 proposes a method for using taxation statistics, which tend to be available over a longer time span than household income surveys, to estimate the overall distribution of income. Applying this method to Australia, I develop a new annual series for inequality from 1942-2000. Inequality in Australia fell in the 1950s and the 1970s, and rose during the 1980s and 1990s. Chapter 2 analyzes the relationship across countries between trust; inequality; and ethnic, religious and linguistic fractionalization in a group of sixteen mostly OECD countries. Both inequality and fractionalization are negatively associated with trust, and when both are included in the model, inequality is the more significant factor. Using instrumental variables, I show that a one standard deviation increase in inequality (a 6 point rise in the gini) causes a 13 percentage point fall in trust. Chapter 3 looks at how hourly wages are affected by the EITC, using two distinct strategies. First, I use variation in state EITC supplements, which magnify the effect of the federal EITC. I find that a 10 percent increase in the generosity of the EITC is associated with a 4 percent fall in the wages of high school dropouts and a 2 percent fall in the wages of those with only a high school diploma, while having no effect on the wages of college graduates. Given standard estimates of labor demand, this is consistent with the common finding that the EITC boosts labor supply. Despite the fact that workers with children receive a more generous tax credit than childless workers, the hourly wages of both groups are similarly affected by an increase in the overall generosity of the EITC. A second strategy, using a simulated instrument for the federal EITC, produces results that are qualitatively similar to the first. (xsd:string)
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  • http://search.proquest.com/docview/305193633?accountid=14657; http://sfx.lib.uchicago.edu/sfx_local?url_ver=Z39.88-2004&rft_val_fmt=info:ofi/fmt:kev:mtx:dissertation&genre=dissertations+%26+theses&sid=ProQ:ProQuest+Dissertations+%26+Theses+Full+Text&atitle=&title=Essays+in+poverty+and+inequality&issn=&date=2004-01-01&volume=&issue=&spage=&au=Leigh%2C+Andrew+Keith&isbn=&jtitle=&btitle=&rft_id=info:eric/&rft_id=info:doi/ (xsd:string)
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