Effect of increasing wages on incidence and value of public assistance for families of workers likely affected by a minimum-wage increase to $10.10

Effect on: Effect of a $1 increase in hourly wage
Share of workers receiving:
Any government assistance -3.9 ppt***
Earned income tax credit (EITC) -3.8 ppt***
Energy assistance (LIHEAP) -0.5 ppt***
Food stamps (SNAP) -1.6 ppt***
Housing assistance -0.4 ppt***
Medicaid -0.8 ppt***
TANF/cash assistance -0.2 ppt***
Supplemental Nutrition for Women, Infants, and Children (WIC) -0.5 ppt***
Total benefit dollars from:
All government assistance -$126***
Earned income tax credit (EITC) -$56***
Energy assistance (LIHEAP) -$2***
Food stamps (SNAP) -$41***
Housing assistance -$17***
TANF/cash assistance -$6***
Supplemental Nutrition for Women, Infants, and Children (WIC) -$3***

*** All coefficient values are significant at the P<0.01 level. 

Note: Values represent the coefficient on real hourly wages from a series of linear regressions first with binary dependent variables for program participation and second for the level of benefit dollars received. Universe is wage earners who worked in the previous year with imputed wage values between $6.50 and $11.05—the group likely to be affected by an increase in the minimum wage to $10.10.  All models include controls for age, age squared, age cubed, sex, race, worked part-time at any point in the previous year, marital status, family size, number of workers in the family, presence of a disabled person in the household, number of children under 18, citizenship, metropolitan status, state, major industry, and major occupation category. These values do not reflect any adjustment for the known CPS-ASEC undercounting of benefit receipt. 

Source: EPI analysis of Current Population Survey Annual Social and Economic Supplement, pooled 2010–2012 data years

View the underlying data on epi.org.