Affordability in Hours: A Time-Indexed Minimum Wage and an Essential Hours Credit

Alec Pow and Lora Stonden

No ztbx2_v2, SocArXiv from Center for Open Science

Abstract: We measure Monthly Survival Hours (MSH, or Essential Hours), the paid work time required to buy a fixed essentials basket, revealing a sharp affordability crisis: D3 renter hours spiked 50% from 117.4 hours (2019) to 175.7 hours (2022), with 2025 levels at 157.7 hours. We test two implementable policies: a Time-Indexed Minimum Wage (TIMW) that sets the wage floor by rule wmin,t = Ct/Htarget to cap essentials at 120 hours/month, and an Essential Hours Tax Credit (EHTC) that refunds gaps below 100 hours/month for low-wage cohorts via monthly advances. Using CPI components and CPS/OEWS wages across six metros, we show how TIMW stabilizes MSH near target while EHTC backstops D1–D3 renters during shocks, delivering a dual-key hours guarantee without price controls. Case studies for Phoenix, NYC, and Houston illustrate both ends of the metro spread.

Date: 2025-10-15
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:ztbx2_v2

DOI: 10.31219/osf.io/ztbx2_v2

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