Indiana Cannot Survive On $7.25 Low Wages Lead to High Public Assistance
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Abstract
Stagnant wage policies in Indiana have led to a reliance of state assistance programs as low wage workers struggle to make ends meet. The current minimum wage in Indiana of $7.25 does not provide a living wage for residents and is unlikely to rise given the current political climate. While the federal government and cities across the nation have implemented prevailing wage policies, Indiana continues to fall behind in earned income potential despite requiring public assistance programs to include job placement participation.
Using data from the United Way ALICE (Asset Limited, Income Constrained Employed) report and Indiana Family and Social Services Administration (FSSA), this report will show state Temporary Assistance for Needy Families (TANF) and Supplemental Nutrition Assistance Program (SNAP) public assistance programs are not sufficiently structured to help the working poor. Multivariable regression results show ALICE residents in Indiana are significant to the state public assistance rates demonstrating a gap in welfare policy. To reduce public assistance expenditures, Indiana must invest in options to lower ALICE poverty rates with minimum wage increases as the first priority.
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