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The Effects of Minimum Wages on Food Stamp Enrollment and Expenditures

Abstract

We provide the first analysis of how minimum wage policy affect s enrollments and expenditures i n the Supplemental Nutrition Assistance Program (SNAP). Exploiting state and federal - level variation in minimum - wage policy between 1990 and 2012, and incorporating local controls in our specifications, we find that a 10 percent minimum wage increase reduces SNAP enrollment between 2.4 and 3.2 percent, and reduces program expenditures an estimated 1.9 percent. If the federal minimum wage were increased from $7.25 to $10.10, enrollment would fall between 7 .5 and 8.7 percent (3. 1 to 3. 6 million persons) relative to 2012 levels, and annual expenditures would decrease 6 percent ($4.6 billion).

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