
Economics
The EITC and Migrating Out of Rural and Economically Distressed America – HK Applied Micro Seminar
7 Dec 2021 | 10 a.m. – 11:30 a.m.
Zoom (KK910)
Speaker:
Dr. Jacob Bastian
Assistant Professor
Department of Economics
Rutgers University
Abstract:
There is a strong and growing interest in helping families move to areas with higher economic opportunity. This paper is the first to examine whether the Earned Income Tax Credit (EITC) affects migration, with a focus on women from rural and economically distressed areas. We find that the EITC increases migration out of rural and distressed areas, with many of these moves occurring across counties or commuting zones. We also find decreases in living doubled up with another family, and reductions in commute length. Our results suggest that the EITC relaxes credit constraints and helps women move to economic opportunity.