Combining Minimum Wage and Earned Income Tax Credit Policies to Guarantee a Decent Living Standard to All U.S. Workers
Current federal policies to âmake work payâ leave the vast majority―88%―of low-income working families in the U.S. without the guarantee of a decent living standard, even with full-time work. In their new study, Jeannette Wicks-Lim and Jeffrey Thompson advance proposals to substantially strengthen minimum wage laws and the federal Earned Income Tax Credit (EITC) program in the United States, so that, in combination, they can guarantee decent living standards for all full-time U.S. workers and their families. By considering minimum wage laws and the EITC as complements, they show how these measures can operate most effectively and, crucially, how any possible negative unintended consequences of each measure can be minimized. Their proposal increases the effectiveness of these two policy measures so that they would guarantee 60% of all low-income working families a decent living standard through full-time employment. Wicks-Lim and Thompson assess the federal fiscal impact of the changes they propose to the two policies, and consider potential sources of revenue to pay for the increases. They discuss the need for a full-employment economy as the context in which the maximum number of families can have a decent living standard, and propose policies towards that end.
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (413) 545-6355
Fax: (413) 545-2921
Web page: http://www.peri.umass.edu/
More information through EDIRC
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.:
- Maximilian D. Schmeiser, 2012. "Expanding New York State's Earned Income Tax Credit Programme: the effect on work, income and poverty," Applied Economics, Taylor & Francis Journals, vol. 44(16), pages 2035-2050, June.
- Nicholas E. Piggott, 2003. "The Nested PIGLOG Model: An Application to U.S. Food Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 1-15.
- Dean Baker & Robert Pollin & Travis McArthur & Matt Sherman, 2009.
"The Potential Revenue from Financial Transactions Taxes,"
CEPR Reports and Issue Briefs
2009-50, Center for Economic and Policy Research (CEPR).
- Dean Baker & Robert Pollin & Travis McArthur & Matt Sherman, 2009. "The Potential Revenue from Financial Transactions Taxes," Working Papers wp212, Political Economy Research Institute, University of Massachusetts at Amherst.
- Jekanowski, Mark D. & Binkley, James K. & Eales, James S., 2001. "Convenience, Accessibility, And The Demand For Fast Food," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(01), July.
- David Neumark & William Wascher, 2007.
"Does a Higher Minimum Wage Enhance the Effectiveness of The Earned Income Tax Credit?,"
NBER Working Papers
12915, National Bureau of Economic Research, Inc.
- David Neumark & William Wascher, 2011. "Does a Higher Minimum Wage Enhance the Effectiveness of the Earned Income Tax Credit?," ILR Review, Cornell University, ILR School, vol. 64(4), pages 712-746, July.
- David Neumark & William Wascher, 2011. "Does a Higher Minimum Wage Enhance the Effectiveness of the Earned Income Tax Credit?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 64(4), pages 712-746, July.
- Arindrajit Dube & T. William Lester & Michael Reich, 2010.
"Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties,"
The Review of Economics and Statistics,
MIT Press, vol. 92(4), pages 945-964, November.
- Dube, Andrajit & Lester, T. William & Reich, Michael, 2010. "Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties," Institute for Research on Labor and Employment, Working Paper Series qt86w5m90m, Institute of Industrial Relations, UC Berkeley.
- Falvey, Rodney E & Gemmell, Norman, 1996. "Are Services Income-Elastic? Some New Evidence," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(3), pages 257-69, September.
- Hristos Doucouliagos & T. D. Stanley, 2009.
"Publication Selection Bias in Minimum-Wage Research? A Meta-Regression Analysis,"
British Journal of Industrial Relations,
London School of Economics, vol. 47(2), pages 406-428, 06.
- Hristos Doucouliagos & T.D. Stanley, 2008. "Publication Selection Bias in Minimum-Wage Research? A Meta-Regression Analysis," Economics Series 2008_14, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
- Timothy J. Richards & Stephen F. Hamilton, 2006. "Rivalry in Price and Variety among Supermarket Retailers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 710-726.
- Jon P. Nelson, 2001. "Hard at Play! The Growth of Recreation in Consumer Budgets, 1959-1998," Eastern Economic Journal, Eastern Economic Association, vol. 27(1), pages 35-53, Winter.
- Arindrajit Dube & Suresh Naidu & Michael Reich, 2007. "The Economic Effects of a Citywide Minimum Wage," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 60(4), pages 522-543, July.
- Daniel Aaronson & Eric French & James MacDonald, 2008. "The Minimum Wage, Restaurant Prices, and Labor Market Structure," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 688-720.
- Lee, Chinkook & Schluter, Gerald E. & O'Roark, Brian, 2000. "How Much Would Increasing the Minimum Wage Affect Food Prices?," Agricultural Information Bulletins 33598, United States Department of Agriculture, Economic Research Service.
- John L. Park & Rodney B. Holcomb & Kellie Curry Raper & Oral Capps, 1996. "A Demand Systems Analysis of Food Commodities by U.S. Households Segmented by Income," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 290-300.
- Jesse Rothstein, 2008. "The Unintended Consequences of Encouraging Work: Tax Incidence and the EITC," Working Papers 1049, Princeton University, Department of Economics, Center for Economic Policy Studies..
- David Fairris & Leon Fernandez Bujanda, 2008. "The Dissipation of Minimum Wage Gains for Workers through Labor-Labor Substitution: Evidence from the Los Angeles Living Wage Ordinance," Southern Economic Journal, Southern Economic Association, vol. 75(2), pages 473-496, October.
When requesting a correction, please mention this item's handle: RePEc:uma:perips:peri_mw_eitc_oct2010. 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: (Judy Fogg)
If references are entirely missing, you can add them using this form.