The Long-run Effects of the 1930s Redlining Maps on Children

Daniel Aaronson, Daniel Hartley, Bhashkar Mazumder and Martha Stinson

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: We estimate the long-run effects of the 1930s Home Owners Loan Corporation (HOLC) redlining maps by linking children in the full count 1940 Census to 1) the universe of IRS tax data in 1974 and 1979 and 2) the long form 2000 Census. We use two identification strategies to estimate the potential long-run effects of differential access to credit along HOLC boundaries. The first strategy compares cross-boundary differences along HOLC boundaries to a comparison group of boundaries that had statistically similar pre-existing differences as the actual boundaries. A second approach only uses boundaries that were least likely to have been chosen by the HOLC based on our statistical model. We find that children living on the lower-graded side of HOLC boundaries had significantly lower levels of educational attainment, reduced income in adulthood, and lived in neighborhoods during adulthood characterized by lower educational attainment, higher poverty rates, and higher rates of single-headed households.

Pages: 42 pages
Date: 2022-12
New Economics Papers: this item is included in nep-his
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Citations: View citations in EconPapers (3)

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https://www2.census.gov/ces/wp/2022/CES-WP-22-56.pdf First version, 2022 (application/pdf)

Related works:
Journal Article: The Long-Run Effects of the 1930s Redlining Maps on Children (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:22-56

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