Lastly, I estimate the impact on equivalized pre-tax income. Because this is estimated
at the household level (and includes non-wage income), the impact of the minimum
wage on income inequality is more muted than on hourly wage inequality or earnings
inequality. However, the patterns mostly remain the same: using the gini or the
Atkinson index, inequality falls under the first scenario, and rises under the second
and third scenarios. Interestingly, when relative poverty is used as the benchmark,
income inequality rises under all scenarios, reflecting the fact that few households in
the bottom quartile of the family income distribution benefit from a minimum wage
rise