The Effect of the Minimum Wage on Employer-Sponsored Insurance for Low-Income Workers and Dependents

Published in: American Journal of Health Economics (2021). doi: 10.1086/716198

by Michael Dworsky, Christine Eibner, Xiaoyu Nie, Jeffrey B. Wenger

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This study found robust evidence that minimum wage increases lead to reductions in employer-sponsored insurance (ESI) coverage in families below 300% of the federal poverty level, with a nominal $1 increase in the minimum wage reducing the probability of ESI coverage by 1 percentage point. Reductions in coverage were also observed both for workers and for their dependents.

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