Minimum wage hikes linked to reduced eviction risk: Research

Study finds renters in states that raised their minimum wage during the first decade of the 2000s experienced fewer defaults than renters in states that did not raise their wage floor. by Clark Merrefield | March 7, 2022 |

In the months after a state raises its minimum wage, fewer residents miss their rent payments, staving off the risk of eviction, finds a comprehensive analysis of U.S. residential leases forthcoming in the Journal of Urban Economics.

The paper, “Minimum Wage Increases and Eviction Risk,” also finds that when minimum wages go up, the default rate declines more for tenants with low monthly rent payments, compared with tenants who pay relatively high rents. The authors define a default as a tenant missing rent for a month, a potential precursor to eviction.

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