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The Effects of Minimum Wages on Food Stamp Enrollment and Expenditures

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  • Michael Reich
  • Rachel West

Abstract

type="main" xml:id="irel12110-abs-0001"> We provide the first causal analysis of how minimum wages affects enrollments and expenditures in the Supplemental Nutrition Assistance Program (SNAP). Exploiting state- and federal-level variation in minimum-wage policy between 1990 and 2012, and incorporating local controls in our specifications, we find that a 10 percent minimum wage increase reduces SNAP enrollment between 2.4 and 3.2 percent, and reduces program expenditures an estimated 1.9 percent. If the federal minimum wage were increased from $7.25 to $10.10, enrollment would fall between 7.5 and 8.7 percent (3.1 to 3.6 million persons) relative to 2012 levels, and annual expenditures would decrease 6 percent ($4.6 billion).

Suggested Citation

  • Michael Reich & Rachel West, 2015. "The Effects of Minimum Wages on Food Stamp Enrollment and Expenditures," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(4), pages 668-694, October.
    • Handle: RePEc:bla:indres:v:54:y:2015:i:4:p:668-694
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    File URL: http://hdl.handle.net/10.1111/irel.2015.54.issue-4
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    Citations

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    Cited by:

    1. Arindrajit Dube, 2019. "Minimum Wages and the Distribution of Family Incomes," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 268-304, October.
    2. Aaron Sojourner & José Pacas, 2019. "The Relationship Between Union Membership and Net Fiscal Impact," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(1), pages 86-107, January.
    3. George L. Wehby & Dhaval M. Dave & Robert Kaestner, 2020. "Effects of the Minimum Wage on Infant Health," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(2), pages 411-443, March.
    4. Brady P. Horn & Johanna Catherine Maclean & Michael R. Strain, 2017. "Do Minimum Wage Increases Influence Worker Health?," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1986-2007, October.
    5. Bru Laín & Lluís Torrens, 2019. "Barcelona’s minimum living wage initiative," Transfer: European Review of Labour and Research, , vol. 25(3), pages 387-391, August.
    6. Riser, Quentin H. & Rouse, Heather L. & Dorius, Cassandra J., 2023. "Association between early income variation around poverty thresholds, income trajectories, and birth, child, and family characteristics," Children and Youth Services Review, Elsevier, vol. 145(C).
    7. Randy Albelda & Michael Carr, 2017. "One Step Forward, One Step Back? Labor Supply Effects of Minimum Wage Increases on Single Parents with Public Child Care Support," Working Papers 2017_01, University of Massachusetts Boston, Economics Department.
    8. Richard V. Burkhauser & Drew McNichols & Joseph J. Sabia, 2023. "Minimum Wages and Poverty: New Evidence from Dynamic Difference-in-Differences Estimates," NBER Working Papers 31182, National Bureau of Economic Research, Inc.
    9. Dami'an Vergara, 2022. "Minimum Wages and Optimal Redistribution," Papers 2202.00839, arXiv.org, revised Dec 2022.
    10. Regmi, Krishna, 2020. "The effect of the minimum wage on children’s cognitive achievement," Labour Economics, Elsevier, vol. 65(C).

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