By David Card,Alan B. Krueger
David Card and Alan B. Krueger have already made nationwide information with their pathbreaking learn at the minimal salary. the following they current a robust new problem to the normal view that greater minimal wages decrease jobs for low-wage employees. In a piece that has very important implications for public coverage in addition to for the course of monetary examine, the authors positioned typical fiscal thought to the try out, utilizing information from a chain of modern episodes, together with the 1992 bring up in New Jersey's minimal salary, the 1988 upward thrust in California's minimal salary, and the 1990-91 raises within the federal minimal salary. In each one case they current a battery of facts displaying that raises within the minimal salary bring about raises in pay, yet no loss in jobs.
a particular function of Card and Krueger's examine is using empirical equipment borrowed from the common sciences, together with comparisons among the "treatment" and "control" teams shaped whilst the minimal salary rises for a few employees yet now not for others. additionally, the authors severely reexamine the former literature at the minimal salary and locate that it, too, lacks aid for the declare greater minimal salary cuts jobs. eventually, the consequences of the minimal salary on relations profits, poverty results, and the inventory marketplace valuation of low-wage employers are documented. total, this booklet calls into query the traditional version of the exertions industry that has ruled economists' pondering at the minimal salary. additionally, it is going to shift the phrases of the talk at the minimal salary in Washington and in kingdom legislatures in the course of the country.
With a brand new preface discussing new info, Myth and Measurement maintains to shift the phrases of the controversy at the minimal wage.
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