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Income Distribution

Upjohn Institute Working Papers

Low skill workers

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Full-Text Articles in Social and Behavioral Sciences

The Effects Of Increasing The Minimum Wage On Prices: Analyzing The Incidence Of Policy Design And Context, Daniel Macdonald, Eric Nilsson Jun 2016

The Effects Of Increasing The Minimum Wage On Prices: Analyzing The Incidence Of Policy Design And Context, Daniel Macdonald, Eric Nilsson

Upjohn Institute Working Papers

We analyze the price pass-through effect of the minimum wage and use the results to provide insight into the competitive structure of low-wage labor markets. Using monthly price series, we find that the pass-through effect is entirely concentrated on the month that the minimum wage change goes into effect, and is much smaller than what the canonical literature has found. We then discuss why our results differ from that literature, noting the impact of series interpolation in generating most of the previous results. We then use the variation in the size of the minimum wage change to evaluate the competitive …


The Effect Of The Earned Income Tax Credit In The District Of Columbia On Poverty And Income Dynamics, Bradley L. Hardy, Daniel Muhammad, Rhucha Samudra Jun 2015

The Effect Of The Earned Income Tax Credit In The District Of Columbia On Poverty And Income Dynamics, Bradley L. Hardy, Daniel Muhammad, Rhucha Samudra

Upjohn Institute Working Papers

Using unique longitudinal administrative tax panel data for the District of Columbia (DC), we assess the combined effect of the DC supplemental earned income tax credit (EITC) and the federal EITC on poverty and income dynamics within Washington, DC, from 2001 to 2011. The EITC in DC merits investigation, as the DC supplement to the federal credit is the largest in the nation. The supplemental DC EITC was enacted in 2000, and has been expanded from 10 percent of the federal credit in 2001 to 40 percent as of 2009. To implement the study, we estimate least squares models with …


Who Benefits From A Minimum Wage Increase?, John W. Lopresti, Kevin J. Mumford Mar 2015

Who Benefits From A Minimum Wage Increase?, John W. Lopresti, Kevin J. Mumford

Upjohn Institute Working Papers

This paper addresses the question of how a minimum wage increase affects the wages of low-wage workers. Most studies assume that there is a simple mechanical increase in the wage for workers earning a wage between the old and the new minimum wage, with some studies allowing for spillovers to workers with wages just above this range. Rather than assume that the wages of these workers would have remained constant, this paper estimates how a minimum wage increase impacts a low-wage worker’s wage relative to the wage the worker would have if there had been no minimum wage increase. The …