A New Perspective on Minimum Wage Effects

Session Submission Type: Panel

Abstract

Minimum wage policies, while often examined through the lens of labor market outcomes such as employment and earnings, also have implications for health-related outcomes. The three studies delve into the varied and often underexplored impacts of minimum wage policies on health of distinct demographic groups, highlighting how minimum wage increases can reshape access to health insurance, shift reliance between private and public coverage, and even affect health indicators such as maternal morbidity. By examining effects across age, race, and health status during a critical life stage, the papers collectively demonstrate the complex and sometimes unexpected ways minimum wage interacts with specific population vulnerabilities and characteristics. Together, they provide empirical evidence that labor market policies should consider broader spillover effects.

One of the core insights across the studies is that minimum wage increases can produce both protective and disruptive effects on health coverage. On the one hand, higher wages may improve access to employer-sponsored insurance for some workers, particularly those who remain stably employed in low-wage sectors. On the other hand, they can lead to a reduction in non-wage benefits as employers adjust to increased labor costs. This tradeoff disproportionately impacts groups that are already vulnerable—such as older non-working adults and low-wage Black workers—who may lose access to employer-sponsored plans. As a result, wage policy has the potential to change not only income but also the structure and security of health coverage, creating both winners and losers within the system.

The studies also show that the effects of minimum wage policies are highly heterogeneous, shaped by age, race, employment status, and stage of life. Workers approaching retirement, for example, face unique challenges as they navigate gaps in insurance coverage between employer-provided plans and Medicare. Similarly, racial disparities emerge in how wage increases affect insurance access, with some groups experiencing reductions in coverage that may deepen preexisting inequalities.

Beyond insurance coverage, minimum wage increases may affect health through more indirect pathways, such as by mitigating financial stress. The studies suggest that higher wages may enhance individuals’ ability to afford healthcare, reduce chronic stressors, and improve outcomes during particularly sensitive periods—like pregnancy. The findings strengthen the case for considering the minimum wage not just as an economic intervention, but as a public health tool with the capacity to affect well-being across multiple domains.

Taken together, these findings challenge the conventional boundaries between economic and health policy. We argue for a more integrated approach to policy evaluation—one that accounts for cross-sector spillovers. Policymakers should consider the full range of potential impacts that wage changes create. As the U.S. continues to grapple with health disparities and fragmented coverage, minimum wage policy may serve as a lever for advancing both economic and health security.

 

Policy Area

• Health Policy

Secondary Policy Area

• Poverty and Income Policy

Chair

• Callie Freitag, University of Wisconsin-Madison

Discussant

• Martha Susana Jaimes, Institute for Women's Policy Research

Organizer

• Soohyun Kim, Syracuse University

Individual Presentations

• Do Minimum Wage Increases Impact Employment and Health Insurance Coverage for Older Adults? - Presenting Author: Soohyun Kim, Syracuse University

• The Effects of Minimum Wage Increases on Health Insurance - Presenting Author: Hyunji Ahn, Rutgers University - New Brunswick

• Minimum Wage Increases and Severe Maternal Morbidity - Presenting Author: Hyoyoung Han, Rutgers University

• Coverage Interrupted: Income Volatility and Health Insurance Patterns Among Low-Income Adults - Presenting Author: Jeehae Kang, University of Illinois; Non-Presenting Co-Author: Soohyun Yoon, University of Illinois; Non-Presenting Co-Author: Chi-Fang Wu, University of Illinois