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Minimum Wages and the Uptake of Supplemental Security Income

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  • Regmi, Krishna

    (Florida Gulf Coast University)

Abstract

This study investigates whether the minimum wage affects the uptake of Supplemental Security Income (SSI). To disentangle the effect of the minimum wage from underlying macroeconomic conditions, I use a triple-differences-type model that exploits cross-state and temporal differences in the minimum wage and its differential effects on those individuals with and without a high school diploma. The results show that a one percent increase in the minimum wage leads to a 0.33 percent decline in SSI uptake. To substantiate the findings, this study employs an alternative approach, leveraging the discontinuity in minimum wage legislation at state borders by comparing SSI uptake within the contiguous state-border counties. Using this approach yields qualitatively similar findings, corroborating the baseline estimates.

Suggested Citation

  • Regmi, Krishna, 2024. "Minimum Wages and the Uptake of Supplemental Security Income," IZA Discussion Papers 17074, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17074
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    References listed on IDEAS

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    More about this item

    Keywords

    minimum wage; Supplemental Security Income; border discontinuity; means-tested programs;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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