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The Effect of the Minimum Wage When It Really Bites: A Reexamination of the Evidence from Puerto Rico

  • Alan Krueger

This paper reinvestigates the evidence on the impact of the minimum wage on employment in Puerto Rico. The strongest evidence that the minimum wage had a negative effect on employment comes from an aggregate time series analysis. The weakest evidence comes from cross-industry analyses. The main finding of the paper, however, is that the statistical evidence of a negative employment effect of the minimum wage in Puerto Rico is surprisingly fragile.

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File URL: http://arks.princeton.edu/ark:/88435/dsp013t945q78d
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Paper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 709.

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Date of creation: May 1994
Date of revision:
Handle: RePEc:pri:indrel:dsp013t945q78d
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  1. David Card, 1992. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage," Working Papers 680, Princeton University, Department of Economics, Industrial Relations Section..
  2. Lawrence F. Katz & Alan B. Krueger, 1991. "The Effect of the New Minimum Wage Law in a Low-Wage Labor Market," NBER Working Papers 3655, National Bureau of Economic Research, Inc.
  3. Lawrence F. Katz & Alan B. Krueger, 1992. "The effect of the minimum wage on the fast-food industry," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(1), pages 6-21, October.
  4. Santiago, Carlos E, 1989. "The Dynamics of Minimum Wage Policy in Economic Development: A Multiple Time-Series Approach," Economic Development and Cultural Change, University of Chicago Press, vol. 38(1), pages 1-30, October.
  5. Richard B. Freeman & Wayne B. Gray & Casey Ichniowski, 1981. "Low-Cost Student Labor: The Use and Effects of the Subminimum Wage Provisions for Full-time Students," NBER Working Papers 0765, National Bureau of Economic Research, Inc.
  6. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-93, September.
  7. Stephen Machin & Alan Manning, 1992. "Minimum Wages," CEP Discussion Papers dp0080, Centre for Economic Performance, LSE.
  8. Brown, Charles, 1988. "Minimum Wage Laws: Are They Overrated?," Journal of Economic Perspectives, American Economic Association, vol. 2(3), pages 133-45, Summer.
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