Effects of a Minimum Wage Increase on Social Safety Net
Published at KRC-PBPC here. By Marc Stier and Diana Polson INCREASED INCOME FROM RAISING MINIMUM WAGE IS GREATER, AND IN MOST CASES, FAR GREATER THAN THE LOSS IN BENEFITS AND NEW TAXES PAID HARRISBURG—As Pennsylvania seriously considers raising the minimum wage for the first time in over a decade (and as the U.S. House prepares to vote on a bill to increase the minimum wage federally), concerns have been raised that workers receiving a higher wage also will face a “benefits cliff.” A benefits cliff occurs when individuals get a wage increase but the social benefits they lose and the taxes they pay increase more than their additional earnings, resulting in an overall reduction in a family’s standard of living. The Pennsylvania Budget and Policy Center today released two policy briefs examining the effects of a minimum wage increase to $15/hr in Pennsylvania. One brief examines a wage increase when… Continue reading



