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The effect of the minimum wage on children’s cognitive achievement

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  • Regmi, Krishna

Abstract

At the center of the minimum wage debate is its role in improving the welfare of low-income families. However, there is little empirical evidence of whether minimum wage changes actually affect those families’ children. This paper examines the effect of the minimum wage on the math and reading achievement levels of children with low socioeconomic status whose parents are most likely to be affected by the minimum wage, comparing with children in households with high socioeconomic status. Estimates show that a $1 minimum wage increase reduces children’s math and reading scores by approximately 0.10–0.19 standard deviations. Further, there is evidence that increases in the minimum wage lead to deterioration in the home environment, which may be one potential mechanism underlying my main findings.

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  • Regmi, Krishna, 2020. "The effect of the minimum wage on children’s cognitive achievement," Labour Economics, Elsevier, vol. 65(C).
    • Handle: RePEc:eee:labeco:v:65:y:2020:i:c:s0927537120300488
    DOI: 10.1016/j.labeco.2020.101844
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    Cited by:

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    More about this item

    Keywords

    Minimum wage; Child achievement; Fixed effects; Low socioeconomic status;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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