How to Help the Working Poor

Like me, Greg Mankiw believes that the best way to help the working poor is through the earned income tax credit. Unlike me, Professor Mankiw uses a particularly ingenious method to make his point: . . . those who are worried about inequality look for more immediate ways to help workers with limited skills. Before turning to …

Think Raising the Minimum Wage Will Help Fight Poverty?

Then prepare to be disappointed: The decline in the real value of the minimum wage is indisputable. As shown in the chart below, the real value of the federal minimum declined sharply over the 1980s, and then further in the mid-2000s, before partly recovering with the fairly steep increases in the minimum wage in 2007-9.  …