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Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania

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  • Card, David
  • Krueger, Alan B

Abstract

On April 1, 1992, New Jersey's minimum wage rose from $4.25 to $5.05 per hour. To evaluate the impact of the law, the authors surveyed 410 fast-food restaurants in New Jersey and eastern Pennsylvania before and after the rise. Comparisons of employment growth at stores in New Jersey and Pennsylvania (where the minimum wage was constant) provide simple estimates of the effect of the higher minimum wage. The authors also compare employment changes at stores in New Jersey that were initially paying high wages (above $5.00) to the changes at lower-wage stores. They find no indication that the rise in the minimum wage reduced employment. Copyright 1994 by American Economic Association.

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 84 (1994)
Issue (Month): 4 (September)
Pages: 772-93

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Handle: RePEc:aea:aecrev:v:84:y:1994:i:4:p:772-93

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Blog mentions

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  1. La (ir)relevancia del salario mínimo en Chile
    by Dany Jaimovich - Bakary Baludin in Development Therapy on 2012-07-18 12:40:00
  2. Does the minimum wage raise employment?
    by Economic Logician in Economic Logic on 2010-05-21 14:28:00
  3. Along the Minimum-Wage Battle Front
    by Nancy Folbre in Economix on 2010-11-01 08:00:00
  4. Human Rights Maps (73): Minimum Wages in the U.S.
    by Filip Spagnoli in P.A.P.-Blog on 2009-12-01 09:01:41
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  1. Minimum wages and employment: a case study of the fast-food industry in New Jersey and Pennsylvania (AER 1994) in ReplicationWiki
  2. Economic Logic blog

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