Myth and Measurement: The new Economics of the Minimum Wage
Myth and Measurement: The new Economics of the Minimum Wage is a work published in 1997 by the two economists David Card and Alan B. Krueger . It goes back to an article published in 1994 entitled "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania". Card and Krueger argue that introducing or increasing a minimum wage will not destroy jobs.
content
Until the 1990s, the dominant view in economics was that the introduction or increase of a minimum wage would necessarily destroy jobs. In their work, however, Krueger and Card put forward the thesis that the introduction or increase of a minimum wage does not necessarily destroy jobs. They substantiated their thesis with an empirical study in which they compared two regions for an industry (fast food restaurants): New Jersey, in which a minimum wage of 4.25 dollars an hour had been raised to 5.05 dollars in 1992, and neighboring Pennsylvania in which the minimum wage remained at 4.25 an hour. The result was that the increase in the minimum wage in New Jersey had not led to a reduction in staff, but rather more staff were hired.
reception
Myth and Measurement was received overwhelmingly with approval. Cards and Krueger's results were confirmed by further studies, both spatially and temporally broader (e.g. a study by the Labor Market Research Center of the US University of Berkeley in 2010): There have been no higher minimum wages in the United States in the past 16 years Jobs destroyed.
supporting documents
- ↑ https://www.washingtonpost.com/blogs/ezra-klein/post/a-closer-look-at-alan-kruegers-academic-work/2011/08/29/gIQAjA2PnJ_blog.html
- ^ Olaf Storbeck: Labor market: Why a minimum wage is good. In: Zeit Online. December 17, 2010, accessed October 20, 2013 .
- ↑ s. Handelsblatt January 2, 2011: US Study: The Truth About Minimum Wages