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

LaTanya Brown-Robertson, Marcus Casey, Bradley Hardy and Daniel Muhammad

American Economic Review, 2016, vol. 106, issue 5, 360-62

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.

JEL-codes: H23 I38 J15 R11 R23 R38 R58 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/aer.p20161117
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