Longer-Run Effects of Antipoverty Policies on Disadvantaged Neighborhoods

Available from: 
March 2019
Paper author(s): 
David Neumark
Brian J. Asquith
Brittany Bass
Poverty - Inequality - Aid Effectiveness

We estimate the longer-run effects of minimum wages, the Earned Income Tax Credit, and welfare on key economic indicators of economic self-sufficiency in disadvantaged neighborhoods. We find that the longer-run effects of the EITC are to increase employment and to reduce poverty and public assistance. We also find some evidence that higher welfare benefits had longer-run adverse effects, and quite robust evidence that tighter welfare time limits reduce poverty and public assistance in the longer run. The evidence on the long-run effects of the minimum wage on poverty and public assistance is not robust, with some evidence pointing to reductions and some to increases.


Research section: 
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