A Measure of Help for the Working Poor: A Study of the Effects of the Minimum Wage on Welfare Enrollment in the United States, 1990-2011
Morrison, Donna R
This paper examines the relationship between minimum wages and welfare enrollment in the United States. Much research has been done on correlations between minimum wages and unemployment rates and some on associations between unemployment rates and welfare enrollment. This study attempts to bridge the gap. The study uses panel data from 1990-2011 that was collected from various government agencies and combined into one dataset. The hypothesis was that rising minimum wages would lead to increases in welfare enrollment based on economic theories of labor supply and demand. In addition to the presumed loss of jobs that would accompany rising wages, other measures that employers may take to absorb the changes would disproportionately affect the working poor. The working poor may then turn to social benefit programs for assistance. However, the results showed that rising minimum wages are correlated with small decreases in welfare enrollment. Other socioeconomic factors, like the percentage of the population living in poverty have larger impacts on average welfare enrollment.
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Clustering Around the Wage Floor: the Effects of the Federal Minimum Wage on Employment In Puerto Rico Reyes Jove, Tatiana (Georgetown University, 2017)Despite the wealth of literature on the effects of the minimum wage on employment in the contiguous U.S., there is a dearth of comparable studies for the island of Puerto Rico. This paper exploits U.S. Census data for the ...