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Does the minimum wage affect welfare caseloads?

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  • Marianne E. Page

    (University of California, Davis)

  • Joanne Spetz

    (University of California, San Francisco)

  • Jane Millar

    (University of California, Davis)

Abstract

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.© 2005 by the Association for Public Policy Analysis and Management

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of Policy Analysis and Management.

Volume (Year): 24 (2005)
Issue (Month): 2 ()
Pages: 273-295

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Handle: RePEc:wly:jpamgt:v:24:y:2005:i:2:p:273-295

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Web page: http://www3.interscience.wiley.com/journal/34787/home

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The Minimum Wage: Facts vs. Fiction
    by Patrick Brennan in The Corner on 2014-01-30 17:49:06
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Cited by:
  1. Sen, Anindya & Rybczynski, Kathleen & Van De Waal, Corey, 2011. "Teen employment, poverty, and the minimum wage: Evidence from Canada," Labour Economics, Elsevier, Elsevier, vol. 18(1), pages 36-47, January.
  2. Masayoshi Hayashi, 2012. "Forecasting Welfare Caseloads: The Case of the Japanese Public Assistance Program," CIRJE F-Series, CIRJE, Faculty of Economics, University of Tokyo CIRJE-F-846, CIRJE, Faculty of Economics, University of Tokyo.
  3. Francine D. Blau & Lawrence M. Kahn & Jane Waldfogel, 2002. "The Impact of Welfare Benefits on Single Motherhood and Headship of Young Women: Evidence from the Census," NBER Working Papers 9338, National Bureau of Economic Research, Inc.
  4. Robert F. Schoeni & Rebecca M. Blank, 2000. "What has Welfare Reform Accomplished? Impacts on Welfare Participation, Employment, Income, Poverty, and Family Structure," NBER Working Papers 7627, National Bureau of Economic Research, Inc.
  5. Jonathan Meer & Jeremy West, 2013. "Effects of the Minimum Wage on Employment Dynamics," NBER Working Papers 19262, National Bureau of Economic Research, Inc.
  6. Mark D. Turner, 1999. "The Effects of Higher Minimum Wages on Welfare Recipiency," JCPR Working Papers, Northwestern University/University of Chicago Joint Center for Poverty Research 95, Northwestern University/University of Chicago Joint Center for Poverty Research.

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