Do Earmarks Target Low-Income and Minority Communities? Evidence from US Drinking Water

David A. Keiser, Bhashkar Mazumder, David Molitor, Joseph Shapiro and Brant J. Walker

No 32058, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The quality and inequality of US drinking water investments have gained attention after recent environmental disasters in Flint, Michigan, and elsewhere. We compare the formula-based targeting of subsidized loans provided under the Safe Drinking Water Act with the targeting of congressional drinking water earmarks (“pork barrel” spending). Earmarks are often critiqued for potentially privileging wealthier and more politically connected communities. We find that earmarks target Black, Hispanic, and low-income communities, partly due to targeting water systems serving large populations. Earmark and loan targeting differ significantly across all the demographics we analyze. Compared to Safe Drinking Water Act loans, earmarks disproportionately target Hispanic communities but not Black or low-income communities.

JEL-codes: H2 I1 P0 Q5 (search for similar items in EconPapers)
Date: 2024-01
New Economics Papers: this item is included in nep-agr, nep-env, nep-inv and nep-ure
Note: EEE EH LS PE POL
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Published as David A. Keiser & Bhashkar Mazumder & David Molitor & Joseph S. Shapiro & Brant J. Walker, 2024. "Do Earmarks Target Low-Income and Minority Communities? Evidence from US Drinking Water," AEA Papers and Proceedings, vol 114, pages 36-40.

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Journal Article: Do Earmarks Target Low-Income and Minority Communities? Evidence from US Drinking Water (2024)
Working Paper: Do Earmarks Target Low-Income and Minority Communities? Evidence from US Drinking Water (2024)
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