Dole Dollars

Wage assistance programs aren’t generally a subsidy to low-wage employers. Medicaid, TANF, SNAP and CHP reduce the supply of low wage workers, because the unemployed qualify for benefits thus decreasing their incentive to work. This disincentive raises the wage necessary to attract workers. The exceptions – the EITC and child care subsidies, which are only available to low-wage workers. These programs increase the supply of workers and thus reduce wages.