Assessing the impact of an increase in the minimum wage on household income and poverty
Using repeated cross-section individual and household data and the propensity score differencein-differences (DID) technique, this article investigates the impact of minimum wage hikes on family income and poverty. To do so, it focuses on the large increase in the minimum wage that occurred in Spain...
| Autores: | , |
|---|---|
| Tipo de recurso: | artículo |
| Fecha de publicación: | 2025 |
| País: | España |
| Institución: | Universidad de Alcalá (UAH) |
| Repositorio: | e_Buah Biblioteca Digital Universidad de Alcalá |
| Idioma: | inglés |
| OAI Identifier: | oai:ebuah.uah.es:10017/67296 |
| Acceso en línea: | http://hdl.handle.net/10017/67296 https://dx.doi.org/10.1016/j.ssresearch.2025.103143 |
| Access Level: | acceso abierto |
| Palabra clave: | Minimum wage Double differences Impact evaluation Poverty Household income Economía Economics |
| Sumario: | Using repeated cross-section individual and household data and the propensity score differencein-differences (DID) technique, this article investigates the impact of minimum wage hikes on family income and poverty. To do so, it focuses on the large increase in the minimum wage that occurred in Spain in January 2019 (21.6% in real terms). Our descriptive analysis show that minimum wage earners are more concentrated in households with lower incomes. i.e. in the bottom third of the family income distribution. Moreover, the estimate results provide evidence that the rise in the minimum wage contributed to a greater increase in the income level and to a higher probability of being out of monetary poverty of households with minimum wage earners compared to other households. Our results are robust to the use of different DID methods. |
|---|