Table 5 Minimum wages and poverty
From: Policy levers to increase jobs and increase income from work after the Great Recession
| Â | Â | Â | Â | Â | With state linear trends | |
|---|---|---|---|---|---|---|
Description of estimate | Parameter | Sample | Estimate | Elasticity | Estimate | Elasticity |
A. Reported by Dube, based on NW (2011, Table 6a) | Effect on P(earnings < poverty) | Ages 21–44 | −0.055 | −0.29 | … | … |
B. Recomputed from NW data w/o EITC variables and dropping kids-state, kids-year interactions (standard panel specification) | Effect on P(earnings < poverty) | Ages 21–44 | −0.051 (0.023) | −0.27 | −0.055 (0.025) | −0.29 |
C. Same as B, but for poverty | Effect on P(income < poverty) | Ages 21–44 | −0.032 (0.022) | −0.22 | −0.052 (0.032) | −0.35 |
D. Same as B, but without upper age restriction | Effect on P(earnings < poverty) | Age ≥21 | −0.013 (0.013) | −0.04 | −0.018 (0.024) | −0.06 |
E. Same as C, but without upper age restriction | Effect on P(income < poverty) | Age ≥21 | −0.020 (0.017) | −0.15 | −0.014 (0.018) | −0.11 |
Subgroups | ||||||
F. With kids | Effect on P(income < poverty) | Age ≥21 | −0.024 (0.018) | −0.18 | −0.029 (0.031) | −0.21 |
G. HS education or less | Effect on P(income < poverty) | Age ≥21 | −0.031 (0.028) | −0.19 | −0.001 (0.022) | −0.01 |
H. Black or Hispanic | Effect on P(income < poverty) | Age ≥21 | −0.035 (0.029) | −0.15 | −0.026 (0.035) | −0.12 |
I. Single females with kids | Effect on P(income < poverty) | Age ≥21 | −0.108 (0.040) | −0.30 | −0.048 (0.081) | −0.14 |
J. Single females with HS education or less | Effect on P(income < poverty) | Age ≥21 | −0.033 (0.039) | −0.12 | −0.008 (0.041) | −0.03 |
K. Single females, black or Hispanic | Effect on P(income < poverty) | Age ≥21 | −0.026 (0.051) | −0.07 | −0.093 (0.065) | −0.26 |