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  4. May 2016
  5. Does the EITC Buffer against Neighborhood Transition? Evidence from Washington, DC

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Does the EITC Buffer against Neighborhood Transition? Evidence from Washington, DC

  • LaTanya Brown-Robertson
  • Marcus Casey
  • Bradley Hardy
  • Daniel Muhammad
American Economic Review
vol. 106, no. 5, May 2016
(pp. 360–62)
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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.

Citation

Brown-Robertson, LaTanya, Marcus Casey, Bradley Hardy, and Daniel Muhammad. 2016. "Does the EITC Buffer against Neighborhood Transition? Evidence from Washington, DC." American Economic Review, 106 (5): 360–62. DOI: 10.1257/aer.p20161117

Additional Materials

JEL Classification

  • H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
  • I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
  • J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
  • R11 Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
  • R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
  • R38 Production Analysis and Firm Location: Government Policy
  • R58 Regional Development Planning and Policy