Technical Paper Simulating the Effects of a $15 an Hour Federal Minimum Wage on Poverty and Resources
Linda Giannarelli, Kevin Werner
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This technical report describes in more detail the methods used in “Exploring the Effects of a $15 an Hour Federal Minimum Wage on Poverty, Earnings, and Net Family Resources.” We use the Urban Institute’s Analysis of Transfers, Taxes, and Income Security (ATTIS) microsimulation model to assess how a minimum wage of $15 an hour might affect families’ economic well-being, considering interactions with taxes and benefits and analyzing aggregate impacts and the variation in impacts across families. In the aggregate, reductions in benefits and increases in taxes total slightly over a quarter of the increase in gross wages. A large majority of affected workers would experience higher net resources, and in a scenario that includes some job loss, only 3 percent of workers with an hourly wage increase would see more than a 1 percent reduction in annual family resources. This document provides a case study of how a comprehensive microsimulation model can help assess the impacts of a change in policy with numerous secondary impacts.

Research and Evidence Work, Education, and Labor Tax and Income Supports Technology and Data Race and Equity Upward Mobility
Expertise Upward Mobility and Inequality Social Safety Net Labor Markets Microsimulation Modeling
Research Methods ATTIS Microsimulation Model
Tags Economic well-being From Safety Net to Solid Ground Workers in low-wage jobs Wages and nonwage compensation Poverty Minimum wage
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