Minimum wages and the uptake of Supplemental Security Income

Abstract

This study investigates whether the minimum wage affects the uptake of Supplemental Security Income (SSI). To disentangle the effect of the minimum wage from underlying macroeconomic conditions, I use a triple-differences-type model that exploits cross-state and temporal differences in the minimum wage and its differential effects on those individuals with and without a high school diploma. I find that a one percent increase in the minimum wage leads to a 0.33 percent decline in SSI uptake. The effect is concentrated in unmarried individuals, who are more likely to face financial constraints and thus meet income and resource thresholds for collecting SSI.