A new report by Jesse Rothstein from IRLE at UC Berkeley and Ben Zipperer of the Economic Policy Institute shows that the EITC and the minimum wage are complementary policies that, in many cases, may be more effective together than either is on its own.
“Policy discussions often treat EITC expansion and raising the minimum wage as alternatives, from which we should choose just one. However, this is a misconception,” said Rothstein. “EITC and the minimum wage policies complement one another to boost a worker’s earnings more than wages alone can.”
Access the full report: The EITC and Minimum Wage Work Together to Reduce Poverty and Raise Incomes (Economic Policy Institute, January 2020)