Raising minimum wage lower public assistance costs

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3. "Conclusion: Raising wages among low- and middle-wage workers would simultaneously lift incomes and

reduce spending on public assistance programs. The government could then use these savings to bolster anti-poverty efforts or make new job-creating investments. Increasing the federal minimum wage is one simple way this could be achieved—though it is not the only way. As explained in EPI’s Agenda to Raise America’s Pay, we can raise wages by eliminating the lower subminimum wage for tipped workers, updating overtime protections, strengthening workers’ ability to organize and negotiate with employers collectively, improving enforcement of labor laws, providing undocumented immigrant workers a path to citizenship, and ensuring monetary policy prioritizes full employment. These policies would help undo decades of wage stagnation that have prevented greater improvement in living standards for the vast majority of American households. They would also bring greater balance to the roles that the private and public sectors play in improving American workers’ quality of life.

Long article but worth reading. Great policy recommendations for raising wages.