Artikel

The minimum wage versus the earned income tax credit for reducing poverty

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.

Sprache
Englisch

Erschienen in
Journal: IZA World of Labor ; ISSN: 2054-9571 ; Year: 2021 ; Bonn: Institute of Labor Economics (IZA)

Klassifikation
Wirtschaft
Labor Demand
Wages, Compensation, and Labor Costs: Other
Labor Standards: Public Policy
Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
Measurement and Analysis of Poverty
Thema
minimum wage
earned income tax credit
working poor

Ereignis
Geistige Schöpfung
(wer)
Burkhauser, Richard V.
Corinth, Kevin
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2021

DOI
doi:10.15185/izawol.153.v2
Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Artikel

Beteiligte

  • Burkhauser, Richard V.
  • Corinth, Kevin
  • Institute of Labor Economics (IZA)

Entstanden

  • 2021

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