Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania: Reply By DAVID CARD AND ALAN B. KRUEGER* Replication and reanalysis are important endeavors in economics‚ especially when new findings run counter to conventional wisdom. In their Comment on our 1994 American Economic Review article‚ David Neumark and William Wascher (2000) challenge our conclusion that the April 1992 increase in the New Jersey minimum wage led to no loss of employment
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Pro: The minimum wage across Canada should be increased to at least $10.00 an hour. This would allow some of the working poor to live above the poverty level. In some cases‚ the current minimum wage is not enough to live on‚ and extra assistance is necessary. In some cases the minimum wage is so low that it encourages people to rely on social assistance. Frank Field talks about this in his book The Minimum Wage: "Indeed‚ a low paid worker who works full time may in some instances be worse off
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Literature Review:Raise of Minimum Wage Minimum wage is a topic that is always being discussed and debated over. One reason that this subject is so popular is because everyone who has a job is affected by the result of the wage. Some believe that the minimum should be raise to at least $9‚ while others strongly believe that the raise in wages will disturb the state of the economy. In the articles I have selected the pros and cons of raising the minimum wage are clearly stated. Some of the texts
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Against a Higher Minimum Wage raising the minimum wage hurts the poor. It takes away jobs‚ keeps people on welfare‚ and encourages high-school students to drop out. Policy makers should be clear on the consequence of higher minimum wages. Jobs and the Minimum Wage Economists have studied the job-destroying features of a higher minimum wage. It is important to recognize that the jobs lost are mainly entry-level jobs. By destroying entry-level jobs‚ a higher minimum wage harms the lifetime
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Minimum wage against our economy Every day small businesses are being closed all around the United States. People’s lives are being changed and destroyed every hour. What is the one common cause? Raising the minimum wage. Raising the minimum wage is an evergoing danger that Americans must fight against. The minimum wage has the ability to ruin or stabilize our economy. The government must be more cautious in its implementation of the minimum wage. The minimum wage should not be raised because
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is spending half or more of their life on having their work and the wages are the factor that can ensure their quality of life. As the consumption level in Hong Kong is increasing year by year‚ employees’ wages started not affordable to their life and the poverty problem comes more serious. By then‚ in year 2010‚ Hong Kong government carried out the minimum wage policy and set the price at $28 per hour. The carry out of minimum wage policy apparently can ease the poverty problem in Hong Kong‚ in fact
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In a pure economics sense‚ Brown‚ Gilroy and Kohen(1982) states that “the effect of the minimum wage in the simplest is that employment is reduced and the efficiency of the labour market is impaired because some individuals whose marginal product exceeds their reservation wage are unable to work” (Brown‚ Gilroy and Kohen‚ 1982). The “employment effect” (De Fraja‚ 1999) suggests that an increase in minimum wage will restrict job opportunities‚ resulting in a loss of jobs and potential lowering of
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Minimum wage has been a controversial debate for many years. Many proponents argued that the minimum wage should be raised for many positive reasons. These reasons include: lift people out of poverty and create income equality‚ reduce government welfare spending‚ and increase consumer spending. While many other opponents argued‚ minimum wage should not be raised because of the negative impacts associated with it. These impacts include: increase in poverty because many workers will lose their jobs
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Minimum wage was introduced during the time of the Great Depression by President Roosevelt. Citizens in states which have a higher minimum wage say that states with a lower minimum wage cannot live off of such a small wage‚ and that a higher minimum wage will create higher economy growth and more jobs and minimum wage is causing a significant gap between upper classes and lower classes. Businesses say that it will be difficult to pay their workers more and that they would have to layoff workers and
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Minimum Wage A minimum wage is the lowest hourly wage that employers have to compensate the workers for their service. Currently the federal minimum wage is $7.25 per hour. However‚ many states also have their own minimum wage laws. In those instances‚ the employee is entitled to the higher of the two minimum wages. In this paper we will discuss the brief history of the minimum wage law and its current legislation. We will also analyze the pros and cons of raising the minimum wage‚ and the
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