Minimum Wage Policy and Poverty in the United States
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.
Volume (Year): 15 (2001)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/CIRA20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/CIRA20|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- John T. Addison & McKinleyl Blackburn, 1999.
"Minimum Wages and Poverty,"
Cornell University, ILR School, vol. 52(3), pages 393-409, April.
- 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.
- Timothy J. Bartik, . "The Distributional Effects of Local Labor Demand and Industrial Mix: Estimates Using Individual Panel Data," Upjohn Working Papers and Journal Articles tjb1996, W.E. Upjohn Institute for Employment Research.
- 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 204-11, March.
- 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.
- David Card, 1992.
"Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage,"
NBER Working Papers
4058, National Bureau of Economic Research, Inc.
- 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.
- David Card, 1992. "Using regional variation in wages to measure the effects of the federal minimum wage," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(1), pages 22-37, October.
- David Card, 1992. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage," Working Papers 680, Princeton University, Department of Economics, Industrial Relations Section..
- Freeman, Richard B, 1996. "The Minimum Wage as a Redistributive Tool," Economic Journal, Royal Economic Society, vol. 106(436), pages 639-49, May.
- 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.
- Richard Dickens & Stephen Machin & Alan Manning, 1994. "The Effects of Minimum Wages on Employment: Theory and Evidence from Britain," CEP Discussion Papers dp0183, Centre for Economic Performance, LSE.
- David Card & Lawrence F. Katz & Alan B. Krueger, 1994. "Comment on "Employment effects of minimum and subminimum wages: Panel data on state minimum wage laws," by David Neumark and William Wascher (46:1, Oct. 1992, p. 55)," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(3), pages 487-512, April.
- 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.
- 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.
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: (Michael McNulty)
If references are entirely missing, you can add them using this form.