We combine state minimum wage changes with individual-level income and credit data to estimate the effect of wage gains on the debt of low-wage workers. In the three years following a $0.88 minimum wage increase, low-wage workers experience a $2,712 income increase and a $856 decrease in debt. The entire decline in debt comes from less student loan borrowing among enrolled college students. Credit constraints, buffer-stock behavior, and other rational channels cannot explain the reduction in student debt. Our results are consistent with students perceiving a utility cost of borrowing student debt arising from mental accounting.

中文翻译：

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厌恶学生债务？来自低薪工人的证据

我们将州最低工资变化与个人收入和信用数据结合起来，以估计工资增长对低工资工人债务的影响。在最低工资上涨 0.88 美元后的三年内，低工资工人的收入增加了 2,712 美元，债务减少了 856 美元。债务的全部下降来自在校大学生学生贷款的减少。信贷约束、缓冲库存行为和其他理性渠道无法解释学生债务的减少。我们的结果与学生通过心理账户感知借学生债务所产生的效用成本是一致的。