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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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File URL: http://hdl.handle.net/10.1002/pam.20090
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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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References

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Citations

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, vol. 18(1), pages 36-47, January.
  2. Francine D. Blau & Lawrence M. Kahn & FJane Waldfogel, 2004. "The Impact of Welfare Benefits on Single Motherhood and Headship of Young Women: Evidence from the Census," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
  3. Schoeni, R.F. & Blank, R.M., 2000. "What Has Welfare Reform Accomplished? Impacts on Welfare Participation, Employment, Income, Poverty, and Family Structure," Papers 00-02, RAND - Labor and Population Program.
  4. Hayashi, Masayoshi, 2014. "Forecasting welfare caseloads: The case of the Japanese public assistance program," Socio-Economic Planning Sciences, Elsevier, vol. 48(2), pages 105-114.
  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 95, Northwestern University/University of Chicago Joint Center for Poverty Research.

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