Does the EITC Buffer against Neighborhood Transition? Evidence from Washington, DC
LaTanya Brown-Robertson, Marcus Casey, Bradley Hardy, Daniel Muhammad
American Economic Review · 2016 · Volume 106 · Issue 5
Abstract
Gentrification in major cities has led to concerns that poor and nonwhite residents are being displaced. This paper uses administrative data on tax filing households in Washington DC to examine the potential role that increases in the Earned Income Tax Credit (EITC) plays in the location choices of the working poor. Its principal findings suggest small effects of the EITC on move decisions. Married households with dependents who received increased EITC payments are slightly more likely to remain in gentrifying neighborhoods. By contrast, single parent filers receiving EITC payments are more likely to exit these neighborhoods.
Keywords
Taxation and Subsidies: Externalities, Redistributive Effects, Environmental Taxes and Subsidies, Welfare, Well-Being, and Poverty: Government Programs, Provision and Effects of Welfare Programs, Economics of Minorities, Races, Indigenous Peoples, and Immigrants, Non-labor Discrimination, Regional Economic Activity: Growth, Development, Environmental Issues, and Changes, Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration, Regional Labor Markets, Population, Neighborhood Characteristics, Production Analysis and Firm Location: Government Policy, Regional Development Planning and Policy
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