Working Paper: NBER ID: w26691
Authors: George Wehby; Robert Kaestner; Wei Lyu; Dhaval M. Dave
Abstract: Effects of the minimum wage on labor market outcomes have been extensively debated and analyzed. Less studied, however, are other consequences of the minimum wage that stem from changes in a household’s income and labor supply. We examine the effects of the minimum wage on child health. To obtain estimates, we use data from the National Survey of Children’s Health in conjunction with a difference-in-differences research design. We find that an increase in the minimum wage throughout childhood is associated with a significant improvement in child health. A particularly interesting finding is that much of the benefits of a higher minimum wage are associated with the period between birth and age five.
Keywords: minimum wage; child health; income effects
JEL Codes: I1; I14; I28; J20; J3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Minimum Wage Increase (J38) | Child Health Improvement (I19) |
| Minimum Wage Increase (J38) | Family Income Increase (D31) |
| Family Income Increase (D31) | Child Health Improvement (I19) |
| Minimum Wage Increase (J38) | Poor Health Likelihood Decrease (I12) |
| Minimum Wage Increase (J38) | Excellent Health Probability Increase (I14) |
| Minimum Wage Increase (Ages 13-17) (J31) | Excellent Health Probability Increase (I14) |
| Minimum Wage Increase (Ages 13-17) (J31) | Poor Health Likelihood Decrease (I12) |
| Minimum Wage Increase (First Five Years) (J38) | Child Health Improvement (I19) |