The effect of increased minimum wage on child externalizing behaviors

Abstract

The Family Stress Model (FSM) has been used to show the relationship between socioeconomic disadvantage and child externalizing behaviors and suggests that interventions promoting economic security may be a promising approach to reduce child externalizing behavior. Using longitudinal data from the Fragile Families and Child Wellbeing study from 2002 to 2010 we examined the effect of minimum wage laws on child externalizing behaviors through a difference in difference in differences (DDD) study design. Externalizing behavior was assessed with the Child Behavior Checklist (CBCL) using the rule breaking, attention problems, and violence subscales. DDD analyses suggest a $1 increase in the minimum wage was associated with a 2% reduction in violent behaviors (β = -1.90, 95%CI[-3.12, -0.68], p = 0.003) for the most vulnerable families headed by a primary caregiver with less than a high school education. The study results suggest that increases in the minimum wage are associated with reductions in the most severe and costly externalizing behaviors among children. Study results contribute to a growing body of literature showing that increased family incomes have positive impacts on child development, and that minimum wage policy is potentially an effective mechanism for the primary prevention of violence.

Keywords: Externalizing behaviors; Minimum wage; Violence.