Gopalan, Radhakrishnan; Hamilton, Barton Hughes; Sabat, … - In: The journal of finance : the journal of the American … 79 (2024) 2, pp. 1249-1295
We combine state minimum wage changes with individual-level income and credit data to estimate the effect of wage gains on the debt of low-wage workers. In the three years following a \0.88 minimum wage increase, low-wage workers experience a \2,712 income increase and a $856 decrease in debt....