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Minimum Wage And Welfare Programs Increase Poverty, Study Says

Daily Caller


Minimum wage laws and welfare programs designed to give poor and disadvantaged Americans a boost out of poverty may be doing the opposite, according to the Employment Policies Institute (EPI).

University of California, Irvine economists David Neumark and Brittany Bass teamed up with Brian Asquith of the National Bureau of Economic Research to study the long-term outcomes of “anti-poverty” policies in the areas that need them to work the most. The experts considered the effects of the minimum wage and welfare, as well as the Earned Income Tax Credit (EITC), in an EPI study released Monday.

The team pulled together census data and mapped out disadvantaged areas with high concentrations of low-educated or black Americans, limiting the study of the policies to within those boundaries and comparing them to find trends.

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