Abstract
In this fact sheet, authors Andrew Schaefer, Jessica Carson, Marybeth Mattingly, and Andrew Wink examine the interaction between the minimum wage and the federal Earned Income Tax Credit (EITC) to determine whether a minimum wage increase would produce gains in the sum of earnings plus EITC dollars for low-income workers. They report that for workers earning the minimum wage, an increase would result in higher income; none would experience a lower net income due to changes in the federal EITC credit (though this may be offset by loss of other safety net program benefits). For some family types, increased income would come primarily from a higher minimum wage; for others, gains would also come from the higher-value federal EITC triggered by their higher earnings.
Publication Date
Fall 11-13-2018
Series
National Fact Sheet No. 39
Publisher
Durham, N.H. : Carsey School of Public Policy, University of New Hampshire
Document Type
Article
Recommended Citation
Schaefer, Andrew; Carson, Jessica; Mattingly, Marybeth; and Wink, Andrew, "The Interaction Between the Minimum Wage and the Federal EITC" (2018). The Carsey School of Public Policy at the Scholars' Repository. 352.
https://scholars.unh.edu/carsey/352
Rights
Copyright 2018. Carsey School of Public Policy. These materials may be used for the purposes of research, teaching, and private study. For all other uses, contact the copyright holder.
DOI
https://dx.doi.org/10.34051/p/2020.341