@article{ac69520fe8ac4d7b87d499707f6aa08c,
title = "Minimum wage increases and eviction risk",
abstract = "We extend the debate on the benefits to increasing the minimum wage by examining the impact on expenses associated with shelter, a previously unexplored area. Our analysis uses a unique data set that tracks household rental payments. Increases in state minimum wages significantly reduce the incidence of renters defaulting on their lease contracts by 1.7 percentage points over three months, relative to similar renters who did not experience an increase in the minimum wage. This represents 10.6% fewer monthly defaults. However, this effect slowly decreases over time as landlords react to wage increases by increasing rents.",
author = "Sumit Agarwal and Ambrose, {Brent W.} and Moussa Diop",
note = "Funding Information: ☆ This paper was previously titled “Do Minimum Wage Increases Benefit Low-Income Households? Evidence from the Performance of Residential Leases.” We thank the editor, Gilles Duranton, and two anonymous referees, Dan Aaronson, Danny Ben-Shahar, Eric French, Stuart Gabriel, Alan Krueger, Jaime Luque, Antonio Mello, Robert Moffitt, Meghana Ayyagari, Gary Painter, Stephen Shore, and the seminar participants at the 2019 ESCP-TAU-UCLA Conference on Low-Income Housing Supply and Housing Affordability, the 2019 Asian Real Estate Society meeting, the Board of Governors of the Federal Reserve System, Penn State University, University College London, and the University of Southern California for their helpful comments and suggestions. Funding for data was from the Penn State Institute for Real Estate Studies. Research assistance was provided by Chen Zheng. Publisher Copyright: {\textcopyright} 2021 Elsevier Inc.",
year = "2022",
month = may,
doi = "10.1016/j.jue.2021.103421",
language = "English (US)",
volume = "129",
journal = "Journal of Urban Economics",
issn = "0094-1190",
publisher = "Academic Press Inc.",
}