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Tuesday, January 09, 2007

Minimum Wage vs. EITC

CBO analysis compares the effect of a minimum wage increase vs. an Earned Income Tax Credit Increase for the poor. They find that while most of the benefits of a minimum wage increase would go to non-poor families (they assume no effect on employment, but only for ease of calculation), while most of an EITC would go to poor families.

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