Thomas R. Michl () (Department of Economics, Colgate University)
Abstract
This paper interprets the New Jersey minimum wage studies of Card and Krueger and their critics, Neumark and Wascher through a scheduling model. The former found an increase in the number of workers in New Jersey fast-food restaurants after the state minimum wage was increased, while the latter found a decline in the total payroll hours of New Jersey restaurants. The scheduling model predicts that firms will substitute workers for hours per worker after a wage increase, which is consistent with both studies. Evidence from a subset of restaurants which reported both workers and hours data to Neumark and Wascher supports this interpretation.
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Volume (Year): 26 (2000) Issue (Month): 3 (Summer) Pages: 265-276 Download reference. The following formats are available: HTML
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Find related papers by JEL classification: J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
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