RT Journal Article
SR Electronic
T1 Parental Labor Supply
JF Journal of Human Resources
FD University of Wisconsin Press
SP 416
OP 442
DO 10.3368/jhr.1119-10540R2
VO 59
IS 2
A1 Godøy, Anna
A1 Reich, Michael
A1 Wursten, Jesse
A1 Allegretto, Sylvia
YR 2024
UL http://jhr.uwpress.org/content/59/2/416.abstract
AB 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 zero to five 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.