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Using a before-and-after survey of 410 fast-food restaurants in New Jersey and eastern Pennsylvania, the study compares employment, wages, and prices across states and within New Jersey between initially high-wage and low-wage stores. Results show no indication that the higher minimum wage reduced employment.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/minimum-wages-and-employment-a-case-study-of-the-fast-food-industry-in-new-jersey-and-pennsylvania/504672/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/minimum-wages-and-employment-a-case-study-of-the-fast-food-industry-in-new-jersey-and-pennsylvania/504672.png","ImageObject",300,407,{"name":92,"@type":93},"Mafia 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Jersey.",{"name":119,"@type":110,"acceptedAnswer":120},"What overall employment effect does the paper find?",{"text":121,"@type":113},"The paper finds no indication that the rise in the minimum wage reduced employment.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},504672,1791189246,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":24,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":139,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145},962090760730,"https://ap-avatar.wpscdn.com/davatar_9964176cb1d06d4a9deccf72a44ae3dc","Minimum Wages and Employment:A Case Study of the Fast-Food Industryin New Jersey and Pennsylvania  \nBy DAVID CARD AND ALAN B.KRUEGER*  \nOn April 1,1992,New Jersey's minimum wage rose from $4.25 to $5.05 perhour.To evaluate the impact of the law we surveyed 410 fast-food restaurants inNew Jersey and eastern Pennsylvania before and after the rise.Comparisons ofemployment growth at stores in New Jersey and Pennsylvania(where theminimum wage was constant)provide simple estimates of the effect of the higherminimum wage.We also compare employment changes at stores in New Jerseythat were initially paying high wages (above $5)to the changes at lower-wagestores.We find no indication that the rise in the minimum wage reducedemployment.(JEL J30,J23)  \nHow do employers in a low-wage labormarket respond to an increase in the mini-mum wage?The prediction from conven-tional economic theory is unambiguous:arise in the minimum wage leads perfectlycompetitive employers to cut employment(George J.Stigler,1946).Although studiesin the 1970's based on aggregate teenageemployment rates usually confirmed thisprediction,¹earlier studies based on com-parisons of employment at affected and un-affected establishments often did not(e.g.,Richard A.Lester,1960,1964).Several re-  \n*Department of Economics,Princeton University,Princeton,NJ 08544.We are grateful to the Institutefor Research on Poverty,University of Wisconsin,forpartial financial support.Thanks to Orley Ashenfelter,Charles Brown,Richard Lester,Gary Solon,twoanonymous referees,and seminar participants atPrinceton,Michigan State,Texas A&M,Unversity ofMichigan,University of Pennsylvania,University ofChicago,and the NBER for comments and sugges-tions.We also acknowledge the expert research assis-tance of Susan Belden,Chris Burris,Geraldine Harris,and Jonathan Orszag.  \n'See Charles Brown et al.(1982,1983)for surveys ofthis literature.A recent update(Allison J.Wellington,1991)concludes that the employment effects of theminimum wage are negative but small:a 10-percentincrease in the minimum is estimated to lower teenageemployment rates by 0.06 percentage points.  \ncent studies that rely on a similar compara-tive methodology have failed to detect anegative employment effect of higher mini-mum wages.Analyses of the 1990-1991 in-creases in the federal minimum wage(Lawrence F.Katz and Krueger,1992;Card,1992a)and of an earlier increase in theminimum wage in California(Card,1992b)find no adverse employment impact.A studyof minimum-wage floors in Britain(StephenMachin and Alan Manning,1994)reaches asimilar conclusion.  \nThis paper presents new evidence on theeffect of minimum wages on establishment-level employment outcomes.We analyze theexperiences of 410 fast-food restaurants inNew Jersey and Pennsylvania following theincrease in New Jersey's minimum wagefrom $4.25 to $5.05 per hour.Comparisonsof employment,wages,and prices at storesin New Jersey and Pennsylvania before andafter the rise offer a simple method forevaluating the effects of the minimum wage.Comparisons within New Jersey betweeninitially high-wage stores(those paying morethan the new minimum rate prior to itseffective date)and other stores provide analternative estimate of the impact of thenew law.  \nIn addition to the simplicity of our empir-ical methodology,several other features of  \nthe New Jersey law and our data set arealso significant.First,the rise in the mini-mum wage occurred during a recession.Theincrease had been legislated two years ear-lier when the state economy was relativelyhealthy.By the time of the actual increase,the unemployment rate in New Jersey hadrisen substantially and last-minute politicalaction almost succeeded in reducing theminimum-wage increase.It is unlikely thatthe effects of the higher minimum wagewere obscured by a rising tide of generaleconomic conditions.  \nSecond,New Jersey is a relatively smallstate with an economy that is closely linkedto nearby states.We believe that a controlgroup of fast-food stores ","cbCaiuVOJcm6OoL5","https://ap.wps.com/l/cbCaiuVOJcm6OoL5","pdf",582964,26,"English","# I. The New Jersey Law\n## Minimum wage increases and effective dates","[{\"question\":\"What minimum wage change is studied in New Jersey in 1992?\",\"answer\":\"On April 1, 1992, New Jersey’s minimum wage rose from $4.25 to $5.05 per hour, after earlier planned increases through 1990 and 1991.\"},{\"question\":\"How does the study estimate the employment impact of the higher minimum wage?\",\"answer\":\"It surveys 410 fast-food restaurants before and after the rise and compares employment growth in New Jersey with eastern Pennsylvania, where the minimum wage was constant, and also compares high-wage versus low-wage stores within New Jersey.\"},{\"question\":\"What overall employment effect does the paper find?\",\"answer\":\"The paper finds no indication that the rise in the minimum wage reduced employment.\"}]","Minimum Wages and Employment - A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania | PDF",1791072096,66]