Minimum wage increases and eviction risk

A-Tier
Journal: Journal of Urban Economics
Year: 2022
Volume: 129
Issue: C

Authors (3)

Agarwal, Sumit (not in RePEc) Ambrose, Brent W. (Pennsylvania State University) Diop, Moussa (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We extend the debate on the benefits to increasing the minimum wage by examining the impact on expenses associated with shelter, a previously unexplored area. Our analysis uses a unique data set that tracks household rental payments. Increases in state minimum wages significantly reduce the incidence of renters defaulting on their lease contracts by 1.7 percentage points over three months, relative to similar renters who did not experience an increase in the minimum wage. This represents 10.6% fewer monthly defaults. However, this effect slowly decreases over time as landlords react to wage increases by increasing rents.

Technical Details

RePEc Handle
repec:eee:juecon:v:129:y:2022:i:c:s0094119021001030
Journal Field
Urban
Author Count
3
Added to Database
2026-01-24