IDEAS home Printed from https://ideas.repec.org/a/taf/irapec/v15y2001i1p65-75.html
   My bibliography  Save this article

Minimum Wage Policy and Poverty in the United States

Author

Listed:
  • Lonnie Stevans
  • David Sessions

Abstract

Recent studies have found that increasing the minimum wage is a useful antipoverty tool. In this analysis, we examine the influence of minimum wages and other important variables on US family poverty rates using state data over the years 1984-98 by estimating both a fixed effect and random coefficients regression model. Taking into account labor market influences, demographic factors, and differences in poverty rates across states, we find that expanding the minimum wage coverage and increasing labor force participation both have larger effects on poverty rates as compared to equivalent changes in the level of the minimum wage. It is further implied from the empirical results that the most effective means of lifting families out of poverty are policies that are directed toward increasing minimum wage coverage, encouraging increased labor force participation, raising the minimum wage, and subsidizing higher education, respectively.

Suggested Citation

  • Lonnie Stevans & David Sessions, 2001. "Minimum Wage Policy and Poverty in the United States," International Review of Applied Economics, Taylor & Francis Journals, vol. 15(1), pages 65-75.
  • Handle: RePEc:taf:irapec:v:15:y:2001:i:1:p:65-75
    DOI: 10.1080/02692170120013358
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/02692170120013358
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John T. Addison & McKinleyl Blackburn, 1999. "Minimum Wages and Poverty," ILR Review, Cornell University, ILR School, vol. 52(3), pages 393-409, April.
    2. David Card & Lawrence Katz & Alan Krueger, 1993. "Comment on David Neumark and William Wascher, 'Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws'," Working Papers 695, Princeton University, Department of Economics, Industrial Relations Section..
    3. List, John A & Gallet, Craig A, 1999. "The Kuznets Curve: What Happens after the Inverted-U?," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 200-206, June.
    4. Edward M. Gramlich, 1976. "Impact of Minimum Wages on Other Wages, Employment, and Family Incomes," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 7(2), pages 409-462.
    5. David Card, 1992. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage," ILR Review, Cornell University, ILR School, vol. 46(1), pages 22-37, October.
    6. Bartik, Timothy J., 1996. "The Distributional Effects of Local Labor Demand and Industrial Mix: Estimates Using Individual Panel Data," Journal of Urban Economics, Elsevier, vol. 40(2), pages 150-178, September.
    7. Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, vol. 20(2), pages 487-528, June.
    8. William E. Even & David A. Macpherson, 1996. "Consequences Of Minimum Wage Indexing," Contemporary Economic Policy, Western Economic Association International, vol. 14(4), pages 67-77, October.
    9. Dickens, Richard & Machin, Stephen & Manning, Alan, 1999. "The Effects of Minimum Wages on Employment: Theory and Evidence from Britain," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 1-22, January.
    10. Johnson, William R & Browning, Edgar K, 1983. "The Distributional and Efficiency Effects of Increasing the Minimum Wage: A Simulation," American Economic Review, American Economic Association, vol. 73(1), pages 204-211, March.
    11. Freeman, Richard B, 1996. "The Minimum Wage as a Redistributive Tool," Economic Journal, Royal Economic Society, vol. 106(436), pages 639-649, May.
    12. repec:fth:prinin:300 is not listed on IDEAS
    13. David Card & Lawrence Katz & Alan B. Krueger, 1993. "Comment on David Neumark and William Wascher, "Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws"," Working Papers 695, Princeton University, Department of Economics, Industrial Relations Section..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Raissian, Kerri M. & Bullinger, Lindsey Rose, 2017. "Money matters: Does the minimum wage affect child maltreatment rates?," Children and Youth Services Review, Elsevier, vol. 72(C), pages 60-70.
    2. Dube, Arindrajit, 2017. "Minimum Wages and the Distribution of Family Incomes," IZA Discussion Papers 10572, Institute for the Study of Labor (IZA).
    3. Alexandros Karakitsios & Manos Matsaganis, 2018. "Minimum Wage Effects on Poverty and Inequality," DEOS Working Papers 1801, Athens University of Economics and Business.
    4. Arpaia, Alfonso & Cardoso, Pedro & Kiss, Aron & Van Herck, Kristine & Vandeplas, Anneleen, 2017. "Statutory Minimum Wages in the EU: Institutional Settings and Macroeconomic Implications," IZA Policy Papers 124, Institute for the Study of Labor (IZA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:irapec:v:15:y:2001:i:1:p:65-75. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/CIRA20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.