Here’s a new thought on the homeless.

Minimum Wages and Homelessness

Abstract

America’s cities continue to struggle with homelessness.

Here I offer a factor, the minimum wage, that adds to existing individual and structural explanations. If there are negative distributional consequences of minimum wages, they most likely harm the lowest-skill workers many of whom already face housing insecurity.

To evaluate this argument, I study minimum wage changes in American cities and states 2006 to 2019. Using difference-in-differences methods for staggered treatments I find that minimum wage increases lead to increased point-in-time homeless population counts.

Further analysis suggests disemployment and rental housing prices, but not migration, as mechanisms. Scholars and policymakers who aim to understand and combat homelessness should consider labor market opportunities. Distributional consequences of minimum wage laws also merit further inquiry.

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About On the North River

Forty years toiled in the Tel-com industry, married for 36 years widowed at sixty-one. Ten years in a relationship with a woman until her death. Was a Tea Party supporter. Today a follower of the Last American President to be honestly elected, Donald J. Trump. Recently had Ancestry.com tell me I'm Swedish, not Danish. I may need to change my avatar.
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5 Responses to Here’s a new thought on the homeless.

  1. Put bluntly, the true minimum wage has always been zero.

    I started working during high school at 14 y.o., minimum wage. I learned what a job was, as opposed to doing chores for an allowance. After I gained a little experience I got a raise, because I, now, was worth it. Young people today are being denied that opportunity, because the minimum wage is too high. Mandated by government decree.

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  2. pjrae1954's avatar pjrae1954 says:

    One must wonder if it will ever occur to the masses that no entity can cause more problems than government officials fixing problems that don’t exist…and creating problems that shouldn’t.

    Liked by 1 person

  3. Old and tired's avatar Old and tired says:

    Drugs. Drugs cause homelessness. Those that are homeless and not on drugs are mentally ill. Drugs cause and/or exacerbate mental illness. You cannot blame the government. But you will/do.

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    • You see no fault in the governments handling of the homeless mentally ill?
      Well if that’s your opinion, you’re entitled to it.
      Before we had such an extreme drug problem we had a lot of alcoholics who worked minimum wage jobs and spent the money on booze and cheap flops.
      Government regulation eliminated the flops and higher mandated minimum wages and illegal immigration cost a lot of alkies their jobs, since they weren’t able to compete.

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