RT Journal Article
SR Electronic
T1 Parental Labor Supply: Evidence from Minimum Wage Changes
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 1119-10540R2
DO 10.3368/jhr.1119-10540R2
A1 Godøy, Anna
A1 Reich, Michael
A1 Wursten, Jesse
A1 Allegretto, Sylvia
YR 2021
UL http://jhr.uwpress.org/content/early/2021/11/03/jhr.1119-10540R2.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 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.