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Research ArticleArticles

Parental Labor Supply: Evidence from Minimum Wage Changes

Anna Godøy, Michael Reich, Jesse Wursten and Sylvia Allegretto
Published online before print November 15, 2021, 1119-10540R2; DOI: https://doi.org/10.3368/jhr.1119-10540R2
Anna Godøy
†IRLE, University of California, Berkeley, the Norwegian Institute of Public Health, Oslo, Norway, and the Department of Health Management and Health Economics, University of Oslo, Norway.
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Michael Reich
‡IRLE, University of California, Berkeley.
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Jesse Wursten
§KU Leuven, Leuven, Belgium.
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Sylvia Allegretto
¶IRLE, University of California, Berkeley.
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Abstract

We analyze effects of the minimum wage on the labor supply of parents of young children. Distributional difference-in-differences and event study models document a sharp rise in employment rates of single mothers with children ages 0 to 5 following minimum wage increases. Effects are concentrated among jobs paying close to the minimum wage. We find corresponding drops in the probability of staying out of the labor force to care for family members. Results are consistent with simple labor supply models in which childcare costs create barriers to employment. Minimum wage increases then enable greater labor force participation and reduce child poverty.

Keywords:
  • Labor supply
  • minimum wage
  • parents
  • child poverty
JEL Classification Numbers:
  • J22
  • J38

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Journal of Human Resources: 60 (3)
Journal of Human Resources
Vol. 60, Issue 3
1 May 2025
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Parental Labor Supply: Evidence from Minimum Wage Changes
Anna Godøy, Michael Reich, Jesse Wursten, Sylvia Allegretto
Journal of Human Resources Nov 2021, 1119-10540R2; DOI: 10.3368/jhr.1119-10540R2

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Parental Labor Supply: Evidence from Minimum Wage Changes
Anna Godøy, Michael Reich, Jesse Wursten, Sylvia Allegretto
Journal of Human Resources Nov 2021, 1119-10540R2; DOI: 10.3368/jhr.1119-10540R2
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Keywords

  • labor supply
  • minimum wage
  • parents
  • child poverty
  • J22
  • J38
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