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Minimum Wages and the Distribution of Family Incomes

Year: 2018

Type: report

Abstract: There is robust evidence that higher minimum wages increase family incomes at the bottom of the distribution.The long run (3 or more years) minimum wage elasticity of the non-elderly poverty rate with respect to the minimum wage ranges between -0.220 and -0.459 across alternative specifications.The long run minimum wage elasticities for the 10th and 15th unconditional quantiles of family income range between 0.152 and 0.430 depending on specification.A reduction in public assistance partly offsets these income gains, which are on average 66% as large when using an expanded income definition including tax credits and noncash transfers.

Source: National Bureau of Economic Research

DOI: 10.3386/w25240

Author: Arindrajit Dube

Institutions: National Bureau of Economic Research, University of Wisconsin–Madison, University of Massachusetts Amherst, University of Massachusetts Boston

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: No poverty, Reduced inequalities, Decent work and economic growth

Open Access status: green

Funder: Washington Center for Equitable Growth

OpenAlex ID: W3122692008

Cites: 50

Cited by: 81

Related to: 10