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Niedriglohnarbeitsmarkt

Der Ausbau des Niedriglohnsektors sollte Ende der 1990er Jahre die hohe Arbeitslosigkeit reduzieren. Als Niedriglohn gilt ein Arbeitsentgelt, das trotz Vollzeitbeschäftigung keine angemessene Existenzsicherung gewährleistet – die OECD definiert den ihn als einen Bruttolohn, der unterhalb von zwei Dritteln des nationalen Medianbruttolohns aller Vollzeitbeschäftigten liegt. Betroffen von Niedriglöhnen sind überdurchschnittlich häufig Personen ohne beruflichen Abschluss, jüngere Erwerbstätige und Frauen.
Bietet der Niedriglohnsektor eine Chance zum Einstieg in den Arbeitsmarkt oder ist er eine Sackgasse? Das IAB-Themendossier erschließt Informationen zum Forschungsstand.
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  • Literaturhinweis

    Low-wage employment in France: A cross-country perspective (2025)

    Barreto, César; Puymoyen, Agnes; Fluchtmann, Jonas ; Pearsall, Eliza-Jane; Georgieff, Alexandre; Carcillo, Stéphane ; Pacifico, Daniele; Hijzen, Alexander;

    Zitatform

    Barreto, César, Stéphane Carcillo, Jonas Fluchtmann, Alexandre Georgieff, Alexander Hijzen, Daniele Pacifico, Eliza-Jane Pearsall & Agnes Puymoyen (2025): Low-wage employment in France. A cross-country perspective. (OECD social, employment and migration working papers 313), Paris, 47 S. DOI:10.1787/82539f44-en

    Abstract

    "This study investigates factors favoring a possible "smicardization" of French workers - the process of an increasing coverage of workers at the minimum wage. First, the minimum wage is relatively high in France compared with other countries, with the result that a large number of workers are close to it. Second, low wages reflect less the characteristics of firms or sectors than the low skills of workers, the resolution of which requires appropriate education and training policies, effective over the long-term. Finally, an analysis of tax and benefit systems highlights the existence of potential low-wage trap mechanisms, which are particularly significant in France compared to other countries. Nevertheless, analysis of individual trajectories shows that it is no more difficult for low-wage workers to climb the wage ladder in France than in the other selected countries." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Minimum Wage Effects and Monopsony Explanations (2025)

    Wiltshire, Justin; McPherson, Carl; Reich, Michael ; Sosinskiy, Denis;

    Zitatform

    Wiltshire, Justin, Carl McPherson, Michael Reich & Denis Sosinskiy (2025): Minimum Wage Effects and Monopsony Explanations. In: Journal of labor economics, S. 1-46. DOI:10.1086/735551

    Abstract

    "We present the first causal analysis of a seven-year run-up of minimum wages to $15. Using a novel stacked county-level synthetic control estimator and data on fast-food restaurants, we find substantial pay growth and no disemployment. Our results hold among lower-wage counties and counties without local minimum wages. Minimum wage increases reduce Separation rates and raise wages faster than prices at McDonald’s stores; both findings imply a monopsonistic labor market with declining rents. In the tight post-pandemic labor market, when laborsupply becomes more elastic, we find positive employment effects. These become larger and statistically significant after addressing pandemic-response confounds." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    The U.S. Low-Wage Structure: A McWage Comparison (2024)

    Ashenfelter, Orley; Jurajda, Štepán;

    Zitatform

    Ashenfelter, Orley & Štepán Jurajda (2024): The U.S. Low-Wage Structure: A McWage Comparison. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 17142), Bonn, 34 S.

    Abstract

    "Thanks to standardized work protocol and technology of McDonald's restaurants, the hourly wage of McDonald's Basic Crew enables wage comparisons under near-identical skill inputs and hedonic job conditions. McWages capture labor costs in entry-level jobs, while the Big Macs (earned) Per Hour (BMPH) index measures corresponding purchasing power of wages. We document large and growing geographical wage differences in standardized jobs using data covering most U.S. counties during 2016-2023. Before the Covid-19 pandemic, there was no BMPH growth where minimum wages stayed constant, but the pandemic wage increase, which diminished the importance of minimum wages, was stronger in these areas." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    “Stepping-Stone” versus “Dead-End” Jobs: Occupational Structure, Work Experience, and Mobility Out of Low-Wage Jobs (2024)

    Mouw, Ted ; Kalleberg, Arne L.; Schultz, Michael A. ;

    Zitatform

    Mouw, Ted, Arne L. Kalleberg & Michael A. Schultz (2024): “Stepping-Stone” versus “Dead-End” Jobs: Occupational Structure, Work Experience, and Mobility Out of Low-Wage Jobs. In: American sociological review, Jg. 89, H. 2, S. 298-345. DOI:10.1177/00031224241232957

    Abstract

    "Does working in a low-wage job lead to increased opportunities for upward mobility, or is it a dead-end that traps workers? In this article, we examine whether low-wage jobs are “stepping-stones” that enable workers to move to higher-paid jobs that are linked by institutional mobility ladders and skill transferability. To identify occupational linkages, we create two measures of occupational similarity using data on occupational mobility from matched samples of the Current Population Survey (CPS) and data on multiple dimensions of job skills from the O*NET. We test whether work experience in low-wage occupations increases mobility between linked occupations that results in upward wage mobility. Our analysis uses longitudinal data on low-wage workers from the 1979 National Longitudinal Study of Youth (NLSY) and the 1996 to 2008 panels of the Survey of Income and Program Participation (SIPP). We test the stepping-stone perspective using multinomial conditional logit (MCL) models, which allow us to analyze the joint effects of work experience and occupational linkages on achieving upward wage mobility. We find evidence for stepping-stone mobility in certain areas of the low-wage occupational structure. In these occupations, low-wage workers can acquire skills through work experience that facilitate upward mobility through occupational changes to skill and institutionally linked occupations." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    More than Money? Job Quality and Food Insecurity among Employed Lone Mother Households in the United States (2024)

    Sheely, Amanda ;

    Zitatform

    Sheely, Amanda (2024): More than Money? Job Quality and Food Insecurity among Employed Lone Mother Households in the United States. In: Social Policy and Society, Jg. 23, H. 1, S. 35-52. DOI:10.1017/S1474746421000877

    Abstract

    "This article examines the relationship between food insecurity and the uncertainty and inadequate financial resources associated with low quality work among lone mother households in the United States. Food insecurity has increased since the start of the Great Recession and is particularly high among lone mother households. Using data from the Survey of Income and Program Participation, I find that mothers who have been employed part-time involuntarily and experienced job loss have an increased likelihood of experiencing food insecurity. This relationship holds even after controlling for multiple measures of household income, suggesting the relationship between low quality work and food insecurity is not solely determined by low financial resources. Results suggest that, to reduce food insecurity among lone mother families, policymakers must address both the low wages and uncertainty associated with low quality employment." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Employer Wage Subsidy Caps and Part-Time Work (2023)

    Elvery, Joel A.; Rohlin, Shawn M.; Reynolds, C. Lockwood ;

    Zitatform

    Elvery, Joel A., C. Lockwood Reynolds & Shawn M. Rohlin (2023): Employer Wage Subsidy Caps and Part-Time Work. In: ILR review, Jg. 76, H. 1, S. 189-209. DOI:10.1177/00197939221102865

    Abstract

    "Using tract-level US Census data and triple-difference estimators, the authors test whether firms increase their use of part-time workers when faced with capped wage subsidies. By limiting the maximum subsidy per worker, such subsidies create incentives for firms to increase the share of their payroll that is eligible for the subsidy by increasing use of part-time or low-wage workers. Results suggest that firms located in federal Empowerment Zones in the United States responded to the program’s capped wage subsidies by expanding their use of part-time workers, particularly in locations where the subsidy cap is likely to bind. Results also show a shift toward hiring lower-skill workers." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    To Redistribute or to Predistribute? The Minimum Wage versus Income Taxation When Workers Differ in Both Wages and Working Hours (2023)

    Gerritsen, Aart;

    Zitatform

    Gerritsen, Aart (2023): To Redistribute or to Predistribute? The Minimum Wage versus Income Taxation When Workers Differ in Both Wages and Working Hours. (CESifo working paper 10734), München, 53 S.

    Abstract

    "I consider the case for the minimum wage alongside (optimal) income taxes when workers differ in both wages and working hours, such that a given level of income corresponds to multiple wage rates. The minimum wage is directly targeted at the lowest-wage workers, while income taxes are at most targeted at all low-income workers, regardless of their hourly wage rates. This renders the minimum wage unambiguously desirable in a discrete-type model of the labor market. Desirability of the minimum wage is a priori ambiguous in a continuous-type model of the labor market. Compared to the minimum wage, income taxes are less effective in compressing the wage distribution but more effective in redistributing income. Desirability of the minimum wage depends on this trade-off between the “predistributional advantage” of the minimum wage and the “redistributional advantage” of the income tax. I derive a desirability condition for the minimum wage and write it in terms of empirical sufficient statistics. A numerical application to the US suggests a strong case for a higher federal minimum wage – especially if social preferences for the lowest-wage workers are relatively strong and the wage elasticity of labor demand relatively small." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    How Replaceable Is a Low-Wage Job? (2023)

    Rose, Evan K.; Shem-Tov, Yotam;

    Zitatform

    Rose, Evan K. & Yotam Shem-Tov (2023): How Replaceable Is a Low-Wage Job? (NBER working paper / National Bureau of Economic Research 31447), Cambridge, Mass, 104 S.

    Abstract

    "We study the long-run consequences of losing a low-wage job using linked employer-employee wage records and household surveys. For full-time workers earning $15 per hour or less, job loss due to an idiosyncratic, firm-wide contraction generates a 13% reduction in earnings six years later and over $40,000 cumulative lost earnings. Most of the long-run decrease stems from reductions in employment and hours as opposed to wage rates: job losers are twice as likely to report being unemployed and looking for work. By contrast, workers initially earning $15-$30 per hour see comparable long-run earnings losses driven primarily by reductions in hourly wages. Calibrating a dynamic job ladder model to the estimates implies that the rents from holding a full-time $15 per hour job relative to unemployment are worth about $20,000, more than seven times monthly earnings." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Job market polarization and American poverty (2023)

    Siddique, Abu Bakkar ;

    Zitatform

    Siddique, Abu Bakkar (2023): Job market polarization and American poverty. In: Journal for labour market research, Jg. 57. DOI:10.1186/s12651-023-00356-5

    Abstract

    "The article posits that the puzzles of stagnating poverty rates amidst high growth and declining unemployment in the United States can be substantially explained by polarized job markets characterized by job quality and job distribution. In recent decades, there has been an increased number of poor-quality jobs and an unequal distribution of jobs in the developed world, particularly in the United States. I have calculated measures of uneven job distribution indices that account for the distribution of jobs across households. A higher value of the uneven job distribution indices implies that there are relatively large numbers of households with multiple employed people and households with no employed people. Similarly, poor-quality jobs are those jobs that do not offer full-time work. Two-way fixed-effect models estimate that higher uneven job distribution across households worsens aggregated poverty at the state level. Similarly, good-quality jobs help households escape poverty, whereas poor-quality jobs do not. This paper suggests that eradicating poverty requires the government to direct labor market policies to be tailored more toward distributing jobs from individuals to households and altering bad jobs into good jobs, rather than merely creating more jobs in the economy. This paper contributes by elaborating on relations of employment and poverty, addressing employment quality and distribution, and providing empirical evidence." (Author's abstract, IAB-Doku, © Springer-Verlag) ((en))

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  • Literaturhinweis

    Assessing the impact of technological change on similar occupations: Implications for employment alternatives (2023)

    Torosyan, Karine; Wang, Sicheng ; Mack, Elizabeth A. ; Baker, Nathan ; Fossen, Jenna A. Van ;

    Zitatform

    Torosyan, Karine, Sicheng Wang, Elizabeth A. Mack, Jenna A. Van Fossen & Nathan Baker (2023): Assessing the impact of technological change on similar occupations: Implications for employment alternatives. In: PLoS ONE, Jg. 18. DOI:10.1371/journal.pone.0291428

    Abstract

    "Background: The fast-changing labor market highlights the need for an in-depth understanding of occupational mobility impacted by technological change. However, we lack a multidimensional classification scheme that considers similarities of occupations comprehensively, which prevents us from predicting employment trends and mobility across occupations. This study fills the gap by examining employment trends based on similarities between occupations. Method: We first demonstrated a new method that clusters 756 occupation titles based on knowledge, skills, abilities, education, experience, training, activities, values, and interests. We used the Principal Component Analysis to categorize occupations in the Standard Occupational Classification, which is grouped into a four-level hierarchy. Then, we paired the occupation clusters with the occupational employment projections provided by the U.S. Bureau of Labor Statistics. We analyzed how employment would change and what factors affect the employment changes within occupation groups. Particularly, we specified factors related to technological changes. Results: The results reveal that technological change accounts for significant job losses in some clusters. This poses occupational mobility challenges for workers in these jobs at present. Job losses for nearly 60% of current employment will occur in low-skill, low-wage occupational groups. Meanwhile, many mid-skilled and highly skilled jobs are projected to grow in the next ten years. Conclusion: Our results demonstrate the utility of our occupational classification scheme. Furthermore, it suggests a critical need for skills upgrading and workforce development for workers in declining jobs. Special attention should be paid to vulnerable workers, such as older individuals and minorities." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Inclusive Monetary Policy: How Tight Labor Markets Facilitate Broad-Based Employment Growth (2022)

    Bergman, Nittai K.; Weber, Michael ; Matsa, David;

    Zitatform

    Bergman, Nittai K., David Matsa & Michael Weber (2022): Inclusive Monetary Policy: How Tight Labor Markets Facilitate Broad-Based Employment Growth. (CESifo working paper 9512), München, 45 S.

    Abstract

    "This paper analyzes the heterogeneous effects of monetary policy on workers with differing levels of labor force attachment. Exploiting variation in labor market tightness across metropolitan areas, we show that the employment of populations with lower labor force attachment—Blacks, high school dropouts, and women—is more responsive to expansionary monetary policy in tighter labor markets. The effect builds up over time and is long lasting. We develop a New Keynesian model with heterogeneous workers that rationalizes these results. The model shows that expansionary monetary shocks lead to larger increases in the employment of less attached workers when the central bank follows an average inflation targeting rule and when the Phillips curve is flatter. These findings suggest that, by tightening labor markets, the Federal Reserve’s recent move from a strict to an average inflation targeting framework especially benefits workers with lower labor force attachment." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Would Broadening the UI Tax Base Help Low-Income Workers? (2022)

    Duggan, Mark ; Johnston, Andrew C. ; Guo, Audrey ;

    Zitatform

    Duggan, Mark, Audrey Guo & Andrew C. Johnston (2022): Would Broadening the UI Tax Base Help Low-Income Workers? (IZA discussion paper 15020), Bonn, 12 S.

    Abstract

    "The tax base for state unemployment insurance (UI) programs varies significantly in the U.S., from a low of $7,000 annually in California to a high of $52,700 in Washington. Previous research has provided surprisingly little guidance to policy makers regarding the tradeoffs associated with this variation. In this paper, we use 37 years of data for all 50 states and Washington, D.C. to estimate the impact of the UI tax base on labor-market outcomes. We find that the low tax base that exists in California and many other states (and the necessarily higher tax rates that accompany these) negatively affects labor market outcomes for part-time and other low-earning workers." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Why Do Sectoral Employment Programs Work?: Lessons from WorkAdvance (2022)

    Katz, Lawrence F.; Schaberg, Kelsey; Hendra, Richard; Roth, Jonathan;

    Zitatform

    Katz, Lawrence F., Jonathan Roth, Richard Hendra & Kelsey Schaberg (2022): Why Do Sectoral Employment Programs Work? Lessons from WorkAdvance. In: Journal of labor economics, Jg. 40, H. S1, S. S249-S291. DOI:10.1086/717932

    Abstract

    "This paper examines the evidence from randomized evaluations of sector-focused training programs that target low-wage workers and combine up-front screening, occupational and soft-skills training, and wraparound services. The programs generate substantial and persistent earnings gains (12%–34%) following training. Theoretical mechanisms for program impacts are explored for the WorkAdvance demonstration. Earnings gains are generated by getting participants into higher-wage jobs in higher-earning industries and occupations, not just by raising employment. Training in transferable and certifiable skills (likely underprovided from poaching concerns) and reductions of employment barriers to high-wage sectors for nontraditional workers appear to play key roles." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Supermagd : Arbeitsaneignung im Niedriglohnsektor im Ländervergleich (2022)

    Kupfer, Antonia ;

    Zitatform

    Kupfer, Antonia (2022): Supermagd : Arbeitsaneignung im Niedriglohnsektor im Ländervergleich. In: Arbeits- und industriesoziologische Studien, Jg. 15, H. 1, S. 26-39.

    Abstract

    "Im vorliegenden Beitrag wird ein Konzept der Arbeitsaneignung vorgestellt, das die Subjektperspektive Beschäftigter eingebettet in soziale Kontexte erfasst und analysiert. Damit geraten strukturelle Einflüsse auf die Art und Weise wie Beschäftigte ihre Arbeit wahrnehmen, bewerten und bewältigen in den Blick. Am Beispiel von Supermarktverkäufer_innen in Deutschland und den USA wird das Konzept mit seinen drei Dimensionen sozialer Status der Tätigkeit, Gebrauchswert und Tätigsein entfaltet. Ihr Beschäftigtenanteil ist hoch und – nicht erst in der Corona-Pandemie – systemrelevant. Auf der Grundlage zweier kontrastierender Fälle werden Thesen zur unterschiedlichen Arbeitsaneignung in einem ausgewählten Niedriglohnsektor vorgestellt. Im Ergebnis wird deutlich, dass Arbeitsaneignung in Deutschland im Vergleich zu den USA arbeitnehmerinnenfreundlicher stattfindet. Für eine Verbesserung von Lebensverhältnissen sind daher politische Veränderungen und nicht subjektive Anrufungen erforderlich." (Autorenreferat, IAB-Doku)

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  • Literaturhinweis

    The U.S. tax-transfer system and low-income households: Savings, labor supply, and household formation (2022)

    Ortigueira, Salvador; Siassi, Nawid ;

    Zitatform

    Ortigueira, Salvador & Nawid Siassi (2022): The U.S. tax-transfer system and low-income households: Savings, labor supply, and household formation. In: Review of Economic Dynamics, Jg. 44, S. 184-210. DOI:10.1016/j.red.2021.02.010

    Abstract

    "Eligibility and benefits for anti-poverty income transfers in the U.S. are based on both the means and the household characteristics of applicants, such as their filing status, living arrangement, and marital status. In this paper we develop a dynamic structural model to study the effects of the U.S. tax-transfer system on the decisions of non-college-educated workers with children. In our model workers face uninsurable idiosyncratic risks and make decisions on savings, labor supply, living arrangement, and marital status. We find that the U.S. anti-poverty policy distorts the cohabitation/marriage decision of single mothers, providing incentives to cohabit. We also find quantitatively important effects on savings, and on the labor supply of husbands and wives. Namely, the model yields a U-shaped relationship between the earnings of one spouse and the labor supply of the other spouse, a result that we also find in the data. We show that these U-shaped relationships stem in part from the current design of anti-poverty income programs, and that the introduction of an EITC deduction on the earnings of secondary earners—as proposed in the 21st Century Worker Tax Cut Act—would increase the employment rate of the spouses of workers earning between $15K and $35K, especially of female spouses." (Author's abstract, IAB-Doku, © 2022 Elsevier) ((en))

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  • Literaturhinweis

    The role of low earnings in differing trends in male earnings volatility (2021)

    Carr, Michael D.; Wiemers, Emily E.;

    Zitatform

    Carr, Michael D. & Emily E. Wiemers (2021): The role of low earnings in differing trends in male earnings volatility. In: Economics Letters, Jg. 199. DOI:10.1016/j.econlet.2020.109702

    Abstract

    "Trends in male earnings volatility vary across studies. Volatility is flat or increasing in most studies using survey data but falling in recent studies using administrative data. This paper uses Survey of Income and Program Participation data linked to administrative earnings histories from the Detailed Earnings Records to investigate the effect of the treatment of low earnings on earnings volatility. We show that volatility trends are sensitive to the treatment of low earnings: when low earnings are treated as is typically done with survey data, volatility is flat or increasing slightly, but when low earnings are treated as in recent studies using administrative earnings data, volatility declines." (Author's abstract, IAB-Doku, © 2021 Elsevier) ((en))

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  • Literaturhinweis

    Offshoring, computerization, labor market polarization and top income inequality (2021)

    Cavenaile, Laurent ;

    Zitatform

    Cavenaile, Laurent (2021): Offshoring, computerization, labor market polarization and top income inequality. In: Journal of macroeconomics, Jg. 69. DOI:10.1016/j.jmacro.2021.103317

    Abstract

    "This paper proposes a model of occupational choice with heterogeneous agents in terms of human capital to quantify the role of offshoring and computerization in labor market polarization and increased top income inequality. We find that both offshoring and computerization played a major role regarding labor market polarization in the US over the period 1975–2008. We further show that the last decades can be decomposed into two subperiods. Computerization is the main driver of labor market polarization from 1975 to the mid 1990s, after which globalization (through decreased costs of offshoring) explains more than 70% of job and wage polarization. Our model can also explain around 40% of the observed increase in top income inequality since 1975." (Author's abstract, IAB-Doku, © 2021 Elsevier) ((en))

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  • Literaturhinweis

    Trade and Inequality in Europe and the US (2021)

    Dorn, David ; Levell, Peter ;

    Zitatform

    Dorn, David & Peter Levell (2021): Trade and Inequality in Europe and the US. (IZA discussion paper 14914), Bonn, 65 S.

    Abstract

    "The share of low-income countries in global exports nearly tripled between 1990 and 2015, driven largely by the rapid emergence of China as an exporting powerhouse. While research in economics had long acknowledged that trade with lower-income countries could raise income inequality in Europe and the US, empirical estimates indicated only a modest contribution of trade to growing national skill premia. However, if workers are not highly mobile across firms, industries and locations, then the unequal impacts of trade can manifest along different margins. Recent evidence from countries across Europe and the US shows that growing import competition from China differentially reduced earnings and employment rates for workers in more trade-exposed industries, and for the residents of more trade-exposed geographic regions. These adverse impacts were often largest for lower-skilled individuals. We show that domestic manufacturing employment declined much more in countries that saw a large growth of net imports from China (such as the UK and the US), than in countries that maintained relatively balanced trade with China (such as Germany and Switzerland). Drawing on a new analysis for the UK, we further show that trade with China contributed to job loss in manufacturing, but also to substantial declines in consumer prices. However, while the adverse labour market impacts were concentrated on specific groups of workers and regions, the consumer benefits from trade were widely dispersed in the population, and appear similarly large for high-income and low-income households. Globalisation has thus created pockets of losers, and recent evidence indicates that in addition to financial losses, residents of regions with greater exposure to import competition also suffer from higher crime rates, a deterioration of health outcomes, and a dissolution of traditional family structures. We argue that new import tariffs such as those imposed by the US in 2018 and 2019 are unlikely to help the losers from globalisation. Instead, displaced workers may be better supported by a combination of transfers to avert financial hardship, skills training that facilitate reintegration into the labour market, and place-based policies that stimulate job creation in depressed locations." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    The minimum wage and annual earnings inequality (2021)

    Engelhardt, Gary V. ; Purcell, Patrick J.;

    Zitatform

    Engelhardt, Gary V. & Patrick J. Purcell (2021): The minimum wage and annual earnings inequality. In: Economics Letters, Jg. 207. DOI:10.1016/j.econlet.2021.110001

    Abstract

    "We estimate the impact of the minimum wage on U.S. male annual earnings inequality, using administrative Social Security earnings records from 1981-2015. The minimum wage reduces inequality in the bottom quartile of the earnings distribution, and especially in the bottom decile." (Author's abstract, IAB-Doku, © 2021 Elsevier) ((en))

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  • Literaturhinweis

    Who Does the Earned Income Tax Credit Benefit?: A Monopsony View (2021)

    Farmand, Aida; Davis, Owen;

    Zitatform

    Farmand, Aida & Owen Davis (2021): Who Does the Earned Income Tax Credit Benefit? A Monopsony View. (Working paper / Schwartz Center for Economic Policy Analysis 2021-02), New York, NY, 45 S.

    Abstract

    "The Earned Income Tax Credit (EITC) targets refundable tax credits to low-income workers, incentivizing labor supply and raising the incomes of tens of millions of Americans. One possible consequence of subsidizing low-wage work, however, is to reduce wage growth. A monopsony model of the EITC is developed in order to analyze its impacts on labor market outcomes, which are identified by exploiting variation in state EITC supplements. A first set of results focused on the food service industry find that the EITC increases employment and reduces turnover among young women. Further results suggest that the EITC reduces wages for workers without college degrees. These findings prompt a reconsideration of the redistributive effects of the EITC, particularly for groups like older low-wage workers who face slower wage growth as a result of the policy but do not receive the same level of benefits on average." (Author's abstract, IAB-Doku) ((en))

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