Business & Economy

LA's higher minimum wage could reduce reliance on social programs, study finds

A UC-Berkeley study found that when the minimum wage goes up, food stamp participation rates go down.
A UC-Berkeley study found that when the minimum wage goes up, food stamp participation rates go down.
Getty Images

Listen to story

00:49
Download this story 0.0MB

The L.A. City Council has voted to increase the minimum wage to $15 an hour in Los Angeles by 2020 — a move that could reduce reliance on social safety net institutions.

Researchers from UC Berkeley looked at past instances of minimum wage increases at the state level. Here's what they found:

Food stamp program participation in California has climbed steadily over the past 10 years. As of February, about 4.4 million Californians were participating in the Supplemental Nutrition Assistance Program.