The impact of selected socioeconomic factors on asset building in rural communities

This paper examines the impact of selected socioeconomic factors on amount of earned income tax credit (EITC) received by low-income rural residents. Using a questionnaire, data were obtained from a convenience sample of 82 respondents in South Central Alabama, and were analyzed using descriptive statistics and multiple regression analysis. The results showed that the average amount of EITC received was $1470; a majority of recipients were females, younger, with lower education, lower household incomes, and single. In addition, gender had a statistically significant (p<0.05) effect on the amount of EITC received, with females receiving more EITC than males. Since females received more EITC than males, they could be specifically targeted to participate in programs, such as individual development accounts, that encourage low-income people to save. They could, at least, save part of their credit as they have relatively more disposable income and this will allow them to build wealth