Jersey Card
Card and Krueger found the fast food employment in New Jersey rose following an increase in the minimum wage,?
The following questin is confusing and have no idea how to answer, please help::!!::
Card and Krueger found the fast food employment in New Jersey rose following an increase in the minimum wage, relative to Pennsylvania where the minimum wage was unchanged. Why is this surprising? How might the result be nationalized: in what circumstances might an increase in the minimum wage increasing hiring?
Classic economics and all conservative economists argue over and over again that having or increasing a minimum wage should decrease employment (higher prices for labor should lead to lower demand),
http://www.thefreemanonline.org/featured/regarding-the-minimum-wage/
so this result says classical and neo-classical economists are wrong, at least for today's economy.
But, just showing they were wrong isn't enough; it could be some strange on-time only event or a flaw in the study. So one question is why did increasing the minimum wage in New Jersey increase employment? If we can't answer that, then can we at least think up possible reasons why it might? In either case, is the explanation unique to New Jersey or can we expect the same result in other places - either everywhere else or in places that meet certain criteria.
Now that you understand what is being asked, go to it.
http://en.wikipedia.org/wiki/Minimum_wage#Empirical_studies
http://economistsview.typepad.com/economistsview/2010/10/does-a-higher-minimum-wage-reduce-jobs.html
http://www.angrybearblog.com/2009/02/minimum-wage-disinformation.html
http://www.bus.miami.edu/_assets/files/faculty-and-research/academic-departments/eco/eco-working-papers/2010/Giuliano-Minimum%20Wage.pdf
http://scsuintellectuals.wordpress.com/2009/07/25/a-look-at-the-minimum-wage/
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