Do Minimum Wages Fight Poverty?
AbstractWe present evidence on the effects of minimum wages on family incomes. The results indicate that minimum wages increase both the probability that poor families escape poverty and the probability that previously nonpoor families fall into poverty. The estimated increase in the flow into poverty is larger, although this difference is not statistically significant. We also find that minimum wages tend to boost the incomes of poor families that remain below the poverty line. On net, the various trade-offs created by minimum wage increases more closely resemble income redistribution among low-income families than income redistribution from high- to low-income families. Copyright 2002, Oxford University Press.
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Bibliographic InfoArticle provided by Western Economic Association International in its journal Economic Inquiry.
Volume (Year): 40 (2002)
Issue (Month): 3 (July)
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Other versions of this item:
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- K3 - Law and Economics - - Other Substantive Areas of Law
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ZEW Discussion Papers
98-42, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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- repec:fth:prinin:300 is not listed on IDEAS
- Jean Baldwin Grossman, 1983. "The Impact of the Minimum Wage on Other Wages," Journal of Human Resources, University of Wisconsin Press, vol. 18(3), pages 359-378.
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