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Politics : Formerly About Advanced Micro Devices
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To: J_F_Shepard who wrote (860115)5/29/2015 9:49:34 AM
From: TimF1 Recommendation

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No discussion of the minimum wage is complete without reference to the famous study by economists David Card and Alan B. Krueger, showing that increases in the minimum wage result in more employment.1 What is less widely noted is the fact that Card and Krueger do not actually measure employment. They measure managers’ claims about employment changes that they had instituted or planned to institute. Therefore, no discussion of the minimum wage should be complete without reference to the study by economists David Neumark and William Wascher that attempts to replicate Card and Krueger’s results. Neumark and Wascher, publishing in the same academic journal as Card and Krueger, replicate Card and Krueger’s study but measure employment using actual payroll data. They find that employment did decline following New Jersey’s minimum wage hike.2 This is precisely what standard economic theory predicts should occur
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