Effect of a $1 increase in hourly wages on receipt and value of public assistance benefits, by wage decile group
| Bottom two wage deciles (up to $9.91) | Bottom three wage deciles (up to $12.16) | Bottom four wage deciles (up to $14.72) | Third and fourth wage deciles ($12.16 to $14.72) | Fourth and fifth wage deciles ($14.72 to $17.62) | |
|---|---|---|---|---|---|
| Percentage-point change in share of workers receiving benefits | |||||
| Any means-tested aid | -3.85*** | -3.07*** | -2.51*** | -1.78*** | -1.62*** |
| Food stamps (SNAP) | -2.00*** | -1.86*** | -1.63*** | -1.41*** | -1.03*** |
| Energy assistance (LIHEAP) | -0.39*** | -0.41*** | -0.32*** | -0.24*** | -0.26*** |
| Earned Income Tax Credit (EITC) | -4.14*** | -3.16*** | -2.43*** | -1.58*** | -1.51*** |
| Refundable Child Tax Credit (CTC) | -0.87*** | -0.81*** | -1.39*** | -1.92*** | -2.02*** |
| Supplemental Nutrition for Women, Infants, and Children (WIC) | -0.14 | -0.21*** | -0.14*** | -0.05*** | -0.09*** |
| Housing assistance | -0.32** | -0.28*** | -0.27*** | -0.25*** | -0.12*** |
| Medicaid | -1.32*** | -1.03*** | -0.94*** | -0.88*** | -0.62*** |
| TANF/cash assistance | -0.07 | -0.15*** | -0.12*** | -0.08*** | -0.11*** |
| Change in annual benefit dollars (per person) | |||||
| All means-tested government assistance | -$199.49*** | -$189.50*** | -$178.72*** | -$174.67*** | -$155.09*** |
| Food stamps (SNAP) | -$93.45*** | -$82.82*** | -$66.08*** | -$58.15*** | -$40.46*** |
| Energy assistance (LIHEAP) | -$2.45*** | -$2.21*** | -$1.29*** | -$0.57*** | -$1.01*** |
| Earned Income Tax Credit (EITC) | -$75.68*** | -$79.56*** | -$88.26*** | -$96.93*** | -$99.20*** |
| Refundable Child Tax Credit (CTC) | -$1.92 | -$12.82*** | -$21.16*** | -$27.92*** | -$28.98*** |
| Supplemental Nutrition for Women, Infants, and Children (WIC) | -$3.96* | -$3.69*** | -$1.49*** | $0.62 | -$2.15*** |
| Housing assistance | -$13.66** | -$8.87*** | -$10.59*** | -$11.50*** | -$4.38*** |
| TANF/cash assistance | -$7.60 | -$10.28*** | -$3.72*** | $2.40 | -$5.75*** |
| Number of workers in this range | 15,530,000 | 27,540,000 | 40,710,000 | 25,190,000 | 26,060,000 |
| Average hourly wage of workers in this range | $8.38 | $9.52 | $10.79 | $12.28 | $14.80 |
Note: The sample contains all wage earners who worked in the previous year with imputed hourly wage values in the noted range. In the lowest wage decile, there is a lower bound for valid wage values of $6.50 (90 percent of $7.25) to allow for some measurement error in imputed wage values near the federal minimum wage. All models include controls for age, age squared, age cubed, sex, race, worked part time at any point during the previous year, marital status, family size, presence of a disabled person in the household, number of children under 18, citizenship, metropolitan status, state, major industry, and major occupation category. Coefficient values are significant at *P<0.1, **P<0.05, ***P<0.01.
Source: EPI analysis of Current Population Survey Annual Social and Economic Supplement microdata, pooled years 2012–2014