The minimum wage and parent time use

Abstract

This study used a differences-in-differences strategy with national time diary data from 2003 to 2018 to examine the effects of minimum wage changes on parents’ time with children and in child-related activities. Findings indicate that a $1 increase in the minimum wage was associated with a small increase (2.6%) in the likelihood parents with one or more children under age 16 spent time actively caring for or helping children on weekends, and in more total time with children (a 2% increase in secondary child care time). In general, coefficients were larger for mothers’ time use, particularly non-employed mothers, with potential implications for gender disparities in caregiving. Unmarried parents and parents of color showed increases in their time spent in activities related to children’s health (~55% increase). Mothers showed an increase (8%) in the likelihood they spent any time in child education-related activities, and increases in child care time appeared concentrated among parents whose youngest child was 6–15 years of age. Findings suggest that increases in state minimum wages may lead to small increases in parents’ time investments in children, with some variation among subgroups.