That represents a large increase in welfare and a small but nontrivial decline in graduation rates. The implicit welfare tax rates have a trivial or statistically insignificant impact on graduation rates. The impact on graduation rates from the tax rate on earned income is statistically insignificant. The effect from unearned income tax rates is statistically significant, but trivial in magnitude. A 10 percentage point increase in the unearned income tax rate would increase high school graduation rates by less than two-tenths of 1 percent.
Estimation demonstrates that as a substantive matter it is zero.
The age factor is statistically significant and demonstrates that for this demographic group additional time beyond the normal 18 years is needed to complete high school. Estimation indicates that blacks have a 12 percent higher high school graduation rate than similarly situated low-income nonblack single mothers. Note that the effects of unearned income were quite significant even if small. The unemployment rate was statistically insignificant. State per capita income had a trivial effect.