Card And Krueger's Minimum Wage Case
With this rationale, Card and Krueger’s case study could have been faultlessly implemented, but nonetheless it still represents only one result from a distribution of tentative outcomes. Along with additional information, the best wat to gage the true effect of the minimum wage would be to examine Card and Krueger’s actual experiment results. Unfortunately, we cannot rule out, based on that individual case study that the effects were in truth larger or smaller than what was examined in the case of New Jersey raising their minimum wage in 1992(). Given the problems surrounding Card and Krueger’s minimum wage research, Dube, Lester and Reich replicated Card and Krueger’s New Jersey-Pennsylvania experiment by comparing employment differences across
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A similar absence of a significant negative effect is found for employer hours, even after the three year examination period. Hirsch, Kaufman, and Zelenska gathered data through different interviews with employers and managers, using survey’s designed to explore channels of adjustment to the minimum wage other than trends or changes in employment or hours. The other channels considred for examination were price increases; changes to the internal wage structure, reductions in turnover, reductions in nonlabor costs, reductions in customer service, and lower profits (). Upon examining the data on wages, employment, and hours, Hirsch, Kaufman, and Zelenska determined that while wages did increase upon Congress raising the minimum wage, any employment and hour’s changes were not statistically distinguishable from zero. Based on the interviews and survey’s from managers and employees, Hirsch, Kaufman, and Zelenska empirical study of wage, employment, and other impacts of the federal minimum wage is subject to a number of reasonable critiques. The most pivotal of these is that it is quite cumbersome to generalize from one minimum wage experiment given that the study is based on the experience of 81 restaurants that are all in the same chain in just two states. Still, the employment effects they find lie at the consensus estimate in the mist recent meta-studies: subtle or no negative employment impacts. With the key contribution of the research is its focus on the myriad of ways that employers react to minimum wage increases other than altering hours or job
A similar absence of a significant negative effect is found for employer hours, even after the three year examination period. Hirsch, Kaufman, and Zelenska gathered data through different interviews with employers and managers, using survey’s designed to explore channels of adjustment to the minimum wage other than trends or changes in employment or hours. The other channels considred for examination were price increases; changes to the internal wage structure, reductions in turnover, reductions in nonlabor costs, reductions in customer service, and lower profits (). Upon examining the data on wages, employment, and hours, Hirsch, Kaufman, and Zelenska determined that while wages did increase upon Congress raising the minimum wage, any employment and hour’s changes were not statistically distinguishable from zero. Based on the interviews and survey’s from managers and employees, Hirsch, Kaufman, and Zelenska empirical study of wage, employment, and other impacts of the federal minimum wage is subject to a number of reasonable critiques. The most pivotal of these is that it is quite cumbersome to generalize from one minimum wage experiment given that the study is based on the experience of 81 restaurants that are all in the same chain in just two states. Still, the employment effects they find lie at the consensus estimate in the mist recent meta-studies: subtle or no negative employment impacts. With the key contribution of the research is its focus on the myriad of ways that employers react to minimum wage increases other than altering hours or job