Gopalan, Radhakrishnan; Hamilton, Barton H.; Sabat, Jorge; … - 2021
We use payroll and consumer credit data to estimate the effect of the minimum wage on the debts of low-wage workers. In the three years following a $0.88 increase in the minimum wage, the average low-wage worker experiences a $2,712 increase in income and a $856 decrease in debt. The entire...