Year

2019

Series

Upjohn Institute working paper ; 19-302

DOI

10.17848/wp19-302

Abstract

We estimate 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. We find that the longer-run effects of the EITC are to increase employment and to reduce poverty and public assistance. We also find some evidence that higher welfare benefits had longer-run adverse effects, and quite robust evidence that tighter welfare time limits reduce poverty and public assistance in the longer run. The evidence on the long-run effects of the minimum wage on poverty and public assistance is not robust, with some evidence pointing to reductions and some to increases.

Issue Date

March 2019

Sponsorship

Laura and John Arnold Foundation, Employment Policies Institute, Alfred P. Sloan Foundation (grant G-2017-9813), National Bureau of Economic Research

Subject Areas

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

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Citation

Neumark, David, Brian Asquith, Brittany Bass. 2019. "Longer-Run Effects of Antipoverty Policies on Disadvantaged Neighborhoods." Upjohn Institute Working Paper 19-302. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/wp19-302