Mar 19, 2012 at 9:59 pm
Nice bit of analysis here on how far the minimum wage goes doesn’t go relative to “Fair Market Rents” (about the 45th percentile of the rental distribution in each area)—h/t: RK.
A more nuanced view would include the Earned Income Tax Credit, a critically important wage subsidy for working parents with low-incomes that can add over $5,000 to family income. The anti-minimum wage crowd likes to argue that we don’t need a min wage when we’ve got an EITC. But the magnitudes of the shortfalls shown in the figure—which of course only covers housing; there’s food, health care, etc. too)—show that we need both. They’re complements, not substitutes.
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