Template-Type: ReDIF-Paper 1.0
Title: The Effects of Minimum Wage Increases on Poverty and Food Hardship
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.
Author-Name: Lehner, Lukas
Author-Name: Massenbauer, Hannah
Author-Workplace-Name: University of Zurich
Author-Name: Parolin, Zachary
Author-Email: zachary.parolin@spi.ox.ac.uk
Author-Workplace-Name: The Institute for New Economic Thinking at the Oxford Martin School, University of Oxford
Author-Name:  Pintro Schmitt, Rafael
Author-Email: rafaelpintroschmitt@berkeley.edu
Author-Workplace-Name: University of California, Berkeley
File-URL: https://oms-inet.files.svdcdn.com/production/files/The_Effects_Of_Minimum_Wage_Increases_On_Poverty_And_Food_Hardship_WP_Oct_25.pdf?dm=1760703002
File-Format: Application/pdf
File-Function: 
Keywords: minimum wages, poverty, food hardship, stacked difference-in-differences
Length: 78 pages
Classification-Jel: I32, I38, J23, J38, J88
Creation-Date: 2025-10
Handle: RePEc:amz:wpaper:2025-23