ERIC Number: EJ759325
Record Type: Journal
Publication Date: 2005
Does the Minimum Wage Affect Welfare Caseloads?
Page, Marianne E.; Spetz, Joanne; Millar, Jane
Journal of Policy Analysis and Management, v24 n2 p273-295 Spr 2005
Although minimum wages are advocated as a policy that will help the poor, few studies have examined their effect on poor families. This paper uses variation in minimum wages across states and over time to estimate the impact of minimum wage legislation on welfare caseloads. We find that the elasticity of the welfare caseload with respect to the minimum wage is between 0.1 and 0.2, but this estimate is sensitive to the sample period and assumptions about state trends. We tentatively conclude that higher minimum wages increase welfare dependence; however, more research is warranted.
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Publication Type: Journal Articles; Reports - Evaluative
Education Level: N/A
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