Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/260683 
Year of Publication: 
2021
Citation: 
[Journal:] IZA World of Labor [ISSN:] 2054-9571 [Article No.:] 153v2 [Publisher:] Institute of Labor Economics (IZA) [Place:] Bonn [Year:] 2021
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Minimum wage increases are not an effective mechanism for reducing poverty. And there is little causal evidence that they do so. Most workers who gain from minimum wage increases do not live in poor (or near-poor) families, while some who do live in poor families lose their job as a result of such increases. The earned income tax credit is an effective way to reduce poverty. It raises only the after-tax wage rates of workers in low- and moderate-income families, the tax credit increases with the number of dependent children, and evidence shows that it increases labor force participation and employment in these families.
Subjects: 
minimum wage
earned income tax credit
working poor
JEL: 
J23
J39
J88
I38
I32
Persistent Identifier of the first edition: 
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.