Empirical ResultsIncome-Eligible & CPS

• Welfare Reform & the Minimum Wage Increase

  • Decrease the Monthly Earnings of the Working Poor by Approximately 6%
  • Decline in Earnings of between $35 and $78 per Month, with $57 Being Most Likely

• Interpretation?

  • Minimum Wage Increase Caused a Decline in Hours--CPS Confirms
  • Influx of Low-Skill Workers Due to Welfare Reform--Lower Wages or Hours or Both

Previous slide

Next slide

Back to first slide

View graphic version