scholarly journals Do Low-Income Families Benefit from Minimum Wage Increases? Evidence from State-Level Minimum Wage Laws

Author(s):  
Mark D. Partridge ◽  
Jamie S. Partridge
2020 ◽  
pp. 1-99
Author(s):  
Tobias Renkin ◽  
Claire Montialoux ◽  
Michael Siegenthaler

This paper estimates the pass-through of minimum wage increases into the prices of US grocery and drug stores. We use high-frequency scanner data and leverage a large number of state-level increases in minimum wages between 2001 and 2012. We find that a 10% minimum wage hike translates into a 0.36% increase in the prices of grocery products. This magnitude is consistent with a full pass-through of cost increases into consumer prices. We show that price adjustments occur mostly in the three months following the passage of minimum wage legislation rather than after implementation, suggesting that pricing of groceries is forward-looking.


Nutrients ◽  
2021 ◽  
Vol 13 (12) ◽  
pp. 4386
Author(s):  
Amanda J. Lee ◽  
Dori Patay ◽  
Lisa-Maree Herron ◽  
Ru Chyi Tan ◽  
Evelyn Nicoll ◽  
...  

The COVID-19 pandemic has increased food insecurity worldwide, yet there has been limited assessment of shifts in the cost and affordability of healthy, equitable and sustainable diets. This study explores the impact of the COVID-19 pandemic and income supplements provided by the Australian government on diet cost and affordability for low-income households in an Australian urban area. The Healthy Diets ASAP method protocol was applied to assess the cost and cost differential of current and recommended diets before (in 2019) and during the COVID-19 pandemic (late 2020) for households with a minimum-wage and welfare-only disposable household income, by area of socioeconomic disadvantage, in Greater Brisbane, Queensland, Australia. Data were collected between August and October, 2020, from 78 food outlets and compared with data collected in the same locations between May and October, 2019, in an earlier study. The price of most healthy food groups increased significantly during the pandemic—with the exception of vegetables and legumes, which decreased. Conversely, the price of discretionary foods and drinks did not increase during the pandemic. The cost of the current and recommended diets significantly increased throughout this period, but the latter continued to be less expensive than the former. Due to income supplements provided between May and September 2020, the affordability of the recommended diet improved greatly, by 27% and 42%, for households with minimum-wage and welfare-only disposable household income, respectively. This improvement in the affordability of the recommended diet highlights the need to permanently increase welfare support for low-income families to ensure food security.


2018 ◽  
Vol 42 (3) ◽  
pp. 318-357 ◽  
Author(s):  
Jaime Thomas ◽  
Thomas D. Cook ◽  
Alice Klein ◽  
Prentice Starkey ◽  
Lydia DeFlorio

Policy makers face dilemmas when choosing a policy, program, or practice to implement. Researchers in education, public health, and other fields have proposed a sequential approach to identifying interventions worthy of broader adoption, involving pilot, efficacy, effectiveness, and scale-up studies. In this article, we examine a scale-up of an early math intervention to the state level, using a cluster randomized controlled trial. The intervention, Pre-K Mathematics, has produced robust positive effects on children’s math ability in prior pilot, efficacy, and effectiveness studies. In the current study, we ask if it remains effective at a larger scale in a heterogeneous collection of pre-K programs that plausibly represent all low-income families with a child of pre-K age who live in California. We find that Pre-K Mathematics remains effective at the state level, with positive and statistically significant effects (effect size on the Early Childhood Longitudinal Study, Birth Cohort Mathematics Assessment = .30, p < .01). In addition, we develop a framework of the dimensions of scale-up to explain why effect sizes might decrease as scale increases. Using this framework, we compare the causal estimates from the present study to those from earlier, smaller studies. Consistent with our framework, we find that effect sizes have decreased over time. We conclude with a discussion of the implications of our study for how we think about the external validity of causal relationships.


1996 ◽  
Vol 7 (2) ◽  
pp. 198-212 ◽  
Author(s):  
J.W. Nevile

Increasing income inequalities in Australia increase the need to protect the incomes of low income families. It is difficult for the taxation and social security system alone to do this. Minimum wage rates have a role to play. Thus, the question of their effects on employment can not be sidestepped Traditional analysis of this question is flawed by the assumption of perfect competition and the use of particular equilibrium analysis. Labour markets have many features which distinguish them from perfectly competitive markets and feedbacks from other markets can not be ignored. Theory alone can not settle this question. A large number of empirical studies are surveyed. A widespread consensus exists that effects of minimum wage rises on adult employment are virtually non-existent A number of studies find effects on teenage employment. A number of others do not. However, even those who find statistically significant effects agree that they are small.


2016 ◽  
Vol 16 (3) ◽  
pp. 1473-1500 ◽  
Author(s):  
Carol O. Stivender ◽  
Paul Gaggl ◽  
Louis H. Amato ◽  
Tonya E. Farrow-Chestnut

Abstract Prior research argues that lottery consumers consider how funds are to be used in making lottery purchase decisions. Possible explanations for this behavior include altruism as well as the desire of low-income families to provide educational opportunities within their community. This paper uses a panel of lottery sales for U.S. states covering the period 1980–2000 to test hypotheses regarding the impact of educational earmarking on lottery purchases. Our estimates suggest that states earmarking all or part of their revenue to education experience an increase in lottery sales between 11 % and 25 %, depending on the specification of state trends. Whether the propensity for earmarking to increase sales is viewed positively or negatively depends largely on one’s ethical and moral views of lotteries.


2005 ◽  
Vol 21 (5) ◽  
pp. 299-306 ◽  
Author(s):  
Theresa M. Tetuan ◽  
Dawn McGlasson ◽  
Ileen Meyer

Children from low-income families are more likely to have dental disease and less likely to have regular dental care. Children’s dental-related illnesses are responsible for more than 880,000 lost school days each year. The lack of reliable state-level data often makes monitoring the oral health of children a challenge. By conducting oral health screenings, school nurses could promote prevention and early identification of dental problems and could aid in the collection of data. This innovative project used a convenience sample of students to test a caries detection device. Children in Grades 3 and 6 ( n = 2,622) received oral health screening by the school nurse using a noninvasive laser fluorescent dental device. Findings revealed that 82% of students referred to the dentists received dental care. School nurses can contribute to improving the oral health status of the school-age population by early detection of dental caries and referrals for a dental evaluation.


Nutrients ◽  
2020 ◽  
Vol 12 (9) ◽  
pp. 2613
Author(s):  
Janne Lauk ◽  
Eha Nurk ◽  
Aileen Robertson ◽  
Alexandr Parlesak

Although low socioeconomic groups have the highest risk of noncommunicable diseases in Estonia, national dietary guidelines and nutrition recommendations do not consider affordability. This study aims to help develop nutritionally adequate, health-promoting, and culturally acceptable dietary guidelines at an affordable price. Three food baskets (FBs) were optimised using linear programming to meet recommended nutrient intakes (RNIs), or Estonian dietary guidelines, or both. In total, 6255 prices of 422 foods were collected. The Estonian National Dietary Survey (ENDS) provided a proxy for cultural acceptability. Food baskets for a family of four, earning minimum wage, contain between 73 and 96 foods and cost between 10.66 and 10.92 EUR per day. The nutritionally adequate FB that does not follow Estonian dietary guidelines deviates the least (26% on average) from ENDS but contains twice the sugar, sweets, and savoury snacks recommended. The health-promoting FB (40% deviation) contains a limited amount of sugar, sweets, and savoury snacks. However, values for vitamin D, iodine, iron, and folate are low compared with RNIs, as is calcium for women of reproductive age. When both the RNIs and dietary guidelines are enforced, the average deviation (73%) and cost (10.92 EUR) are highest. The composition of these FBs can help guide the development of dietary guidelines for low income families in Estonia.


2019 ◽  
Vol 19 (2) ◽  
Author(s):  
Thomas Snyder ◽  
Senayt Rinkevich ◽  
Weici Yuan

Abstract The recession of the late 2000s accompanied a steep increase in the number of people on the U.S. federal Supplemental Nutrition Assistance Program (SNAP). The economy recovered, yet the number of people on SNAP remained relatively high. This study investigates whether increases in minimum wages affected the number of SNAP beneficiaries and the per-capita cost of the program. Economic reasoning suggests a minimum wage increase can decrease poverty through higher wages or increase poverty by enacting a barrier to work. Using a panel data set (1997–2015) at the state level, two-way fixed effects estimates demonstrate a nonlinear relationship between minimum wages and SNAP benefits. At low minimum wages, increases in the minimum wage reduce SNAP enrollment and benefits; however, at high minimum wages, increases in the minimum wage increase SNAP enrollment and benefits. Twenty states have already passed the minimum wage turning point. Further increases can lead to more SNAP participants.


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