From Economics 21:
Advocates for raising the minimum wage often claim the rate’s real value has fallen since it was first implemented. University of California, Irvine economics professor David Neumark, in the New York Times’ Economix blog, adds a new component to the debate by accounting for the earned-income tax credit (EITC)… Neumark suggests that proponents of raising the minimum wage narrowly focus on one aspect of federal poverty policy and neglect the benefits of others, such as the EITC. The minimum wage acts as a tax on businesses that employ low-wage workers, making it more difficult for unskilled laborers to find work.

For the full story, please visit http://www.economics21.org/commentary/minimum-wage-vs-eitc.