Longer-Run Effects of Anti-Poverty Policies on Disadvantaged Neighborhoods

Authors

David Neumark, University of California, IrvineFollow
Brian J. Asquith, W.E. Upjohn Institute for Employment ResearchFollow
Brittany Bass, University of California, IrvineFollow

Upjohn Author ORCID Identifier

https://orcid.org/0000-0002-5783-5557

Publication Date

7-2021

Source

Contemporary Economic Policy 38(3): 409-434

Abstract

We assess evidence on the longer‐run effects of minimum wages, the Earned Income Tax Credit, and welfare on key economic indicators of economic self‐sufficiency in disadvantaged neighborhoods. The evidence suggests that the longer‐run effects of the Earned Income Tax Credit are to increase employment and to reduce poverty and public assistance. We also find some evidence consistent with higher welfare benefits having longer‐run adverse effects, and stronger evidence that tighter welfare time limits reduce poverty and public assistance in the longer‐run. The evidence on the longer‐run effects of the minimum wage on poverty and public assistance is not robust.

DOI

10.1111/coep.12445

Publisher

Wiley

Subject Areas

LABOR MARKET ISSUES; Wages, health insurance and other benefits; Minimum wage; UNEMPLOYMENT, DISABILITY, and INCOME SUPPORT PROGRAMS; Poverty and income support; Income support programs; EITC