Empirical studies of the New Jersey–Pennsylvania minimum wage experiment

E795880

Empirical studies of the New Jersey–Pennsylvania minimum wage experiment are influential research analyses that challenged conventional economic theory by showing that raising the minimum wage did not necessarily reduce employment in fast-food restaurants.

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Predicate Object
instanceOf economic research literature
labor economics study
minimum wage policy evaluation
analyzes employment effects of minimum wage changes
associatedWith Alan B. Krueger NERFINISHED
David Card NERFINISHED
challenges conventional competitive labor market model predictions
citedIn meta-analyses of minimum wage employment effects
policy discussions on federal minimum wage increases in the United States
comparesWith Pennsylvania fast-food labor market
contributesTo evidence-based evaluation of labor market policies
rethinking of minimum wage theory
controversy sparked debate over data quality and measurement
criticizedBy David Neumark NERFINISHED
William Wascher NERFINISHED
dataSource survey of fast-food restaurants in New Jersey
survey of fast-food restaurants in Pennsylvania
examines teen and low-wage employment
wage distribution in fast-food sector
field applied microeconometrics
labor economics
finds in some specifications, employment increased in New Jersey relative to Pennsylvania
no evidence of job loss in New Jersey relative to Pennsylvania after the wage increase
focusesOn New Jersey minimum wage increase of 1992
followUpStudies re-analyses using payroll data
replication attempts with alternative datasets
geographicScope New Jersey NERFINISHED
Pennsylvania NERFINISHED
implication minimum wage effects may be context-dependent
simple competitive model predictions may not hold in all low-wage labor markets
influenced empirical methods in labor economics
policy debates on minimum wage
subsequent minimum wage research
methodologicalContribution use of matched establishment-level surveys
use of natural experiments in labor economics
policyContext New Jersey state minimum wage law change
providesEvidenceFor non-negative employment effects of minimum wage increases in some contexts
publishedIn American Economic Review NERFINISHED
recognizedAs key example of quasi-experimental design in economics
landmark study in empirical labor economics
relatedWork Card and Krueger book "Myth and Measurement" NERFINISHED
suggests minimum wage increases do not necessarily reduce employment
supports view that labor markets may exhibit monopsonistic features
timePeriod early 1990s
uses border-county comparison design
difference-in-differences methodology
fast-food restaurant data

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David Card notableWork Empirical studies of the New Jersey–Pennsylvania minimum wage experiment