Minimum Wages and the Distribution of Family Incomes—dube 2017

Higher minimum wages boost low-income family incomes. The long-run (3+ years) minimum wage elasticity of the non-elderly poverty rate ranges from 0.220 to 0.459. Long-run minimum wage elasticities for the 10th and 15th unconditional family income quantiles range from 0.152 to 0.430. Reduced public assistance somewhat offsets these income increases, which are 66% as great when tax credits and non-cash transfers are included.

Dube, A. (2017). Minimum wages and the distribution of family incomes. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2923658