Title

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

Publication Date

1-14-2021

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

https://doi.org/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

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Citation

Neumark, David, Brian Asquith, and Brittany Bass. 2020. "Longer-Run Effects of Anti-Poverty Policies on Disadvantaged Neighborhoods." Contemporary Economic Policy 38(3): 409-434. https://doi.org/https://doi.org/10.1111/coep.12445