Association for Public Policy Analysis & Management

The effects of the minimum wage on labor market outcomes have been extensively debated and analyzed. Less studied, however, are other consequences of the minimum wage that stem from changes in a household’s income and labor supply. We examine the effects of the minimum wage on child health. We employ data from the National Survey of Children’s Health in conjunction with a difference in differences research design. We estimate effects of changes in minimum wage throughout childhood. We find evidence that an increase in the minimum wage throughout childhood is associated with a large improvement in child health. A particularly interesting finding is that much of the benefits of a higher minimum wage are associated with the period between birth and aged five. Our findings suggest that labor market policies that enhance wages might affect wellbeing in broader ways, and that such health effects could be important to consider in any cost-benefit calculus of such policies.