Higher minimum wages increase poverty in poor neighborhoods, study finds

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Title : Higher minimum wages increase poverty in poor neighborhoods, study finds
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news-today.world | A new study from a prominent researcher finds that higher minimum wages have increased poverty in poor neighborhoods, a finding that could shake up the debate over the federal wage floor and slow the liberal push for a $15-an-hour minimum.

The study, led by the University of California, Irvine economist David Neumark and published by the business-backed Employment Policies Institute, finds that, over the course of decades, higher minimum wages don’t reduce poverty in disadvantaged neighborhoods. Rather, the analysis finds that a $1 increase in the minimum wage raises poverty rates and government dependency by about 3 percent.

The report also finds evidence that cash welfare fails to lower poverty.

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