The Effects of Minimum Wages on Low‐Skilled Immigrants’ Wages, Employment, and Poverty

Churchill, Brandyn; Sabia, Joseph J.

doi:10.1111/irel.12232

Cited by 7 publications

(3 citation statements)

References 56 publications

(159 reference statements)

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“…Lastly, while studies have found that the minimum wage is ineffective in combatting current poverty, there may be intergenerational impacts that have not been accounted for in studies to date (Burkhauser & Sabia, 2007;Churchill & Sabia, 2019). Specifically, if there are academic and emotional benefits from heightened amounts of enriching time and primary childcare with children by low education parents, this could increase the probability that these children escape the intergenerational poverty cycle.…”

Section: Discussionmentioning

confidence: 99%

The impact of minimum wage on parental time allocation to children: evidence from the American Time Use Survey

2022

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In this study, using data from the 2003-2019 American Time Use Survey (ATUS), we investigate whether changes in the minimum wage have impacted time allocation to children among low-educated mothers and fathers. Relying on geographic and temporal variation in minimum wage changes across US states, we investigate the impacts of minimum wage increases on total time spent at home with children, time spent on primary childcare, and time spent on enriching childcare activities. Our results indicate that an increase in the minimum wage has a large positive effect on the time low-educated mothers spend on primary childcare and enriching time, with no effect among low-educated fathers. We find that Black mothers with less than a high school education see the biggest gains, with an increase in time spent on childcare and time spent on enriching childcare activities by 13.8 and 15.8 min per day, respectively, for each $1 increase in the minimum wage. We also see that single mothers' time investment is largely unaffected by minimum wage changes, suggesting that there are still considerable income constraints facing these families. Lastly, we see that less educated families with children under the age of 7 significantly increase time spent on primary childcare and enriching time from minimum wage increases, given that they may not have the ability to afford private childcare. Keywords Time with children• Minimum wage • Primary childcare JEL classification J22 • J13

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Section: Discussionmentioning

confidence: 99%

The impact of minimum wage on parental time allocation to children: evidence from the American Time Use Survey

2022

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“…The same study was also backed up by Churchill and Sabia (2019). They studied the minimum wage of immigrants with limited skills and its effect on poverty rates.…”

Section: Wage (W)mentioning

confidence: 99%

The Impact of Unemployment, Minimum Wage, and Real Gross Regional Domestic Product on Poverty Reduction in Provinces of Indonesia

Feriyanto

Aiyubbi

Nurdany

2020

Asian Economic and Financial Review

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Poverty often impedes economic development in numerous countries, Indonesia included. Poverty, as a result of the failure of economic development, must continue to be suppressed and a solution sought, so that poverty no longer causes adverse effects for the country. The purpose of this study is to examine the impact of unemployment, minimum wage, and real gross regional domestic product (GRDP) on poverty reduction in the provinces of Indonesia. Using periodic data from the Central Bureau of Statistics (Badan Pusat Statistik-BPS) over the period 2010-2019, the fixed effect model of the panel data analysis is estimated. The result showed that unemployment and wage had a significant positive effect on poverty in provinces of Indonesia. Meanwhile, the real GRDP had a significant negative effect on poverty in Indonesia. Thus, government policy must focus on reducing unemployment, maintaining price stability to preserve wage levels and purchasing power, and increasing the real GRDP to reduce poverty in Indonesia. Contribution/Originality: This study contributes to the existing literature in the field of human resource economics, particularly on the issue of poverty reduction. This study is one of the few studies that uses panel data and estimation using the fixed effect model on provinces in a country experiencing issues relating to poverty.

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“…Firstly, negative employment effects associated with minimum wage increases can offset hourly wage gains (Caliendo et al, 2017;Churchill and Sabia, 2019). Secondly, minimum wage workers are spread across the household income distribution, often in high income households (Logue and Callan, 2016;MaCurdy, 2015), and these workers are typically not the primary household earner (Maitre et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

The impact of a minimum wage change on the distribution of wages and household income

Redmond

Doorley

McGuinness

2020

Oxford Economic Papers

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We use distribution regression analysis to study the impact of a 6% increase in the Irish minimum wage on the distribution of hourly wages and household income. Wage inequality, measured by the ratio of wages in the 90th and 10th percentiles and the 75th and 25th percentiles, decreased by approximately 8 and 4%, respectively. The results point towards wage spillover effects up to the 30th percentile of the wage distribution. We show that minimum wage workers are spread throughout the household income distribution and are often located in high-income households. Therefore, while we observe strong effects on the wage distribution, the impact of a minimum wage increase on the household income distribution is quite limited.

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The Effects of Minimum Wages on Low‐Skilled Immigrants’ Wages, Employment, and Poverty

Cited by 7 publications

References 56 publications

The impact of minimum wage on parental time allocation to children: evidence from the American Time Use Survey

The impact of minimum wage on parental time allocation to children: evidence from the American Time Use Survey

The Impact of Unemployment, Minimum Wage, and Real Gross Regional Domestic Product on Poverty Reduction in Provinces of Indonesia

The impact of a minimum wage change on the distribution of wages and household income

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