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Poverty & Social Policy Seminar: "EITC Expansions, Earnings Growth, and Inequality: Evidence from Washington, DC"

  • Columbia University School of Social Work 1255 Amsterdam Ave, Room 1109 New York United States (map)
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The Center on Poverty and Social Policy at Columbia University invites you to a Poverty & Social Policy Seminar with Bradley Hardy, Associate Professor, School of Public Affairs, American University. Professor Hardy will present his work that examines the impacts of EITC expansions on income and inequality in Washington, DC.

DATE: Thursday, February 28th, 2019
TIME: 12:00 - 1:00 pm
LOCATION: Columbia School of Social Work
1255 Amsterdam Avenue, Room 1109
New York, NY 10027
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Light lunch will be provided.

Abstract
We use longitudinal administrative tax data from Washington DC (DC) to study how EITC expansions undertaken by Washington DC affect income and inequality in the city. We find that DC EITC credit expansions between 2001 and 2009 are associated with recipient pre-tax earnings growth of roughly 3-4 percent, primarily among single mothers. Together these credits reduce 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 period. Overall, these results complement existing research showing that the EITC has a positive effect on labor market outcomes and household well-being.