Parental Labor Supply: Evidence from Minimum Wage Changes

Autor: Michael Reich, Jesse Wursten, Anna Godøy, Sylvia Allegretto
Rok vydání: 2021
Předmět:
Zdroj: Journal of Human Resources. :1119-10540R2
ISSN: 1548-8004
0022-166X
DOI: 10.3368/jhr.1119-10540r2
Popis: We analyze effects of the minimum wage on the labor supply of parents of young children. Distributional difference-in-differences and event study models document a sharp rise in employment rates of single mothers with children ages 0 to 5 following minimum wage increases. Effects are concentrated among jobs paying close to the minimum wage. We find corresponding drops in the probability of staying out of the labor force to care for family members. Results are consistent with simple labor supply models in which childcare costs create barriers to employment. Minimum wage increases then enable greater labor force participation and reduce child poverty.
Databáze: OpenAIRE