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EITC Expansions, Earnings Growth, and Inequality: Evidence from Washington, DC

  • Center on Poverty and Social Policy at Columbia University 1255 Amsterdam Avenue New York, NY, 10027 United States (map)

Bradley Hardy and colleagues used longitudinal administrative tax data to study how Earned Income Tax Credit expansions undertaken by Washington DC affect income and inequality in the city. They found that DC EITC credit expansions between 2001 and 2009 were associated with recipient pre-tax earnings growth of roughly 3-4 percent, primarily among single mothers. Together these credits reduced post-tax inequality for the 10th percentile relative to median households. However, composition changes in the city and growing overall inequality mitigates this inequality reduction towards the end of the time period. Overall, these results complement existing research showing that the EITC has a positive effect on labor market outcomes and household well-being.


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About Bradley Hardy 

The Center on Poverty and Social Policy at Columbia University hosted a Poverty & Social Policy Seminar with Bradley Hardy, Associate Professor, School of Public Affairs, American University. Professor Hardy presented his work examining the impacts of EITC expansions on income and inequality in Washington, DC.

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February 19

The Political Economy of Family Policy Expansion

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March 28

The Rise of Legal Status Restrictions in American Social Welfare Policy