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The impact of LIHTC program on local schools

Author

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  • Di, Wenhua

    (Federal Reserve Bank of Dallas)

  • Murdoch, James C.

Abstract

The low-income housing tax credit (LIHTC) program has developed over two million rental homes for low-income households since 1986. The perception of deterioration in school quality has been a main reason for community opposition to LIHTC projects in middle-and upper-income areas. In this paper, we examine the impact of LIHTC projects on the nearby school performance. The LIHTC projects tend to have positive and statistically significant impacts on school performance the year they are placed in service and this finding is robust to various specifications. Offsetting these, the one year lag effects are negative and of similar or smaller magnitude.

Suggested Citation

  • Di, Wenhua & Murdoch, James C., 2010. "The impact of LIHTC program on local schools," Working Papers 1006, Federal Reserve Bank of Dallas.
  • Handle: RePEc:fip:feddwp:1006
    Note: Published as: Di, Wenhua and James C. Murdoch (2013), "The Impact of LIHTC Program on Local Schools," Journal of Housing Economics 22 (4): 308-320.
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    File URL: http://www.dallasfed.org/assets/documents/research/papers/2010/wp1006.pdf
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    References listed on IDEAS

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    1. Card, David & Rothstein, Jesse, 2007. "Racial segregation and the black-white test score gap," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2158-2184, December.
    2. Amine Ouazad, 2008. "Assessed by a Teacher Like Me: Race, Gender and Subjective Evaluations," CEE Discussion Papers 0098, Centre for the Economics of Education, LSE.
    3. Mary A. Burke & Tim R. Sass, 2013. "Classroom Peer Effects and Student Achievement," Journal of Labor Economics, University of Chicago Press, vol. 31(1), pages 51-82.
    4. Clapp, John M. & Nanda, Anupam & Ross, Stephen L., 2008. "Which school attributes matter? The influence of school district performance and demographic composition on property values," Journal of Urban Economics, Elsevier, vol. 63(2), pages 451-466, March.
    5. Jacob Vigdor & Jens Ludwig, 2007. "Segregation and the Black-White Test Score Gap," NBER Working Papers 12988, National Bureau of Economic Research, Inc.
    6. Ingrid Gould Ellen & Amy Ellen Schwartz & Ioan Voicu & Michael H. Schill, 2007. "Does federally subsidized rental housing depress neighborhood property values?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 26(2), pages 257-280.
    7. Scafidi, Benjamin & Sjoquist, David L. & Stinebrickner, Todd R., 2007. "Race, poverty, and teacher mobility," Economics of Education Review, Elsevier, vol. 26(2), pages 145-159, April.
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    Keywords

    Housing subsidies; Housing policy; Education; Poverty;

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