Can Rescheduling Explain the New Jersey Minimum Wage Studies?
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.
Volume (Year): 26 (2000)
Issue (Month): 3 (Summer)
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