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Do Minimum Wages Help Workers in Poor and Low-Income Families?

Author

Listed:
  • David Neumark
  • Emma Wohl

Abstract

We provide the first direct estimates of the effects of minimum wages on low-wage workers in families at different points of the distribution of income-to-needs, using data from the Survey of Income and Program Participation, which oversamples low-income families. We find adverse – rather than beneficial – effects of minimum wages on the employment, hours, and earnings of initially-employed low-wage workers in poor and low-income families. Although we do not find a gradient indicating more adverse effects on the poorest low-wage workers, the adverse effects for poor and low-income low-wage workers help explain why minimum wages do not reduce poverty.

Suggested Citation

  • David Neumark & Emma Wohl, 2026. "Do Minimum Wages Help Workers in Poor and Low-Income Families?," NBER Working Papers 35628, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:35628
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    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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