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.
Longer-Run Effects of Antipoverty Policies on Disadvantaged NeighborhoodsUpjohn Institute Working Papers
SeriesUpjohn Institute working paper ; 19-302
Issue DateMarch 2019
SponsorshipLaura and John Arnold Foundation, Employment Policies Institute, Alfred P. Sloan Foundation (grant G-2017-9813), National Bureau of Economic Research
Citation InformationNeumark, David, Brian Asquith, Brittany Bass. 2019. "Longer-Run Effects of Antipoverty Policies on Disadvantaged Neighborhoods." Upjohn Institute Working Paper 19-302. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research.