Abstract:
We study the effects of minimum wage (MW) increases on poverty and food hardship in the United States from 1981–2019 using stacked difference-in-differences models and the Supplemental Poverty Measure. A $1 MW increase reduces poverty by 0.3–0.7 percentage points among all working-age adults and 1.2–1.7 percentage points among likely MW workers, while also reducing food insufficiency by 1.5 percentage points for this group. Effects on poverty are partially offset by higher living costs in MW-increasing states. MW increases meaningfully reduce poverty and food hardship for the workers most directly affected but deliver modest improvements for the broader working-age population.
Citation:
Lehner, L., Massenbauer, H., Parolin, Z. & Pintro Schmitt, R. (2025), 'The Effects of Minimum Wage Increases on Poverty and Food Hardship', INET Oxford Working Paper Series, No. 2025-23