Longer-Run Effects of Anti-Poverty Policies on Disadvantaged Neighborhoods

Speaker
David Neumark
Date
16/04/2018 - 12:30 - 11:10Add To Calendar 2018-04-16 11:10:00 2018-04-16 12:30:00 Longer-Run Effects of Anti-Poverty Policies on Disadvantaged Neighborhoods We estimate the longer-run effects of minimum wages, the Earned Income Tax Credit, and welfare (and welfare reform) on key economic indicators of economic self-sufficiency in disadvantaged neighborhoods.  We find some evidence that higher minimum wages lead, in the longer run, to increases in poverty and the share of families on public assistance.  In contrast, we find some evidence that the EITC has positive longer-run employment effects.  We do not generally find significant evidence of longer-run effects of the EITC on poverty or public assistance in our standard difference-in-difference-in-differences specification.  But in some specifications, especially when we allow the national changes in the EITC to influence the estimates, we find evidence that the more generous EITC reduced poverty and the share on public assistance.  Finally, we find evidence that more generous welfare benefits lead to higher poverty and public assistance in the longer-run. Building 504 (Economics), seminar room 011 אוניברסיטת בר-אילן - Department of Economics Economics.Dept@mail.biu.ac.il Asia/Jerusalem public
Place
Building 504 (Economics), seminar room 011
Affiliation
U. of California -- Irvine
Abstract

We estimate the longer-run effects of minimum wages, the Earned Income Tax Credit, and welfare (and welfare reform) on key economic indicators of economic self-sufficiency in disadvantaged neighborhoods.  We find some evidence that higher minimum wages lead, in the longer run, to increases in poverty and the share of families on public assistance.  In contrast, we find some evidence that the EITC has positive longer-run employment effects.  We do not generally find significant evidence of longer-run effects of the EITC on poverty or public assistance in our standard difference-in-difference-in-differences specification.  But in some specifications, especially when we allow the national changes in the EITC to influence the estimates, we find evidence that the more generous EITC reduced poverty and the share on public assistance.  Finally, we find evidence that more generous welfare benefits lead to higher poverty and public assistance in the longer-run.

Last Updated Date : 17/03/2018