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Autoren: 
Burkhauser, Richard V.
Datum: 
2014
Reihe/Nr.: 
IZA Policy Paper 86
Zusammenfassung: 
Minimum wage increases are not a very effective mechanism for reducing poverty. They are not related to decreases in poverty rates. They can cost some low-income workers their jobs. And most minimum wage earners who gain from a higher minimum wage do not live in poor (or near-poor) families. A better tool for reducing poverty, and at lower cost, is the earned income tax credit. It is a much more targeted way to provide income to workers in poor families. It raises the wages of only workers in low-income families and rises with the number of dependent children in a family.
Schlagwörter: 
minimum wage
earned income tax credit
working poor
JEL: 
J31
J41
J42
Dokumentart: 
Working Paper

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