Obama nominee pulled back on minimum wage defense
Obama nominee pulled back on minimum wage defense
- August 31, 2011
- Research by David Neumark, economics professor, is quoted in Forbes August 31, 2011
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From Forbes:
As I mentioned previously, [Alan] Krueger is most well-known for a study he did with
UC Berkeley economist David Card that upset the conventional wisdom that raising the
minimum wage depresses job creation. The two studied employment at 410 fast-food restaurants
in Pennsylvania and New Jersey, arguing in a 1994 paper that raising the minimum wage
in New Jersey boosted employment. But [Michael] Saltsman tells me there was much subsequent
critique of Card and Krueger's use of a phone survey to gather data. EPI did its own
paper using payroll records, and reached the opposite conclusion from Card and Krueger,
finding that New Jersey's hike in the minimum wage resulted in job loss. Yet more
scholars took up the debate, and two economists, UC Irvine's David Neumark and the
Federal Reserve Board's William Wascher, wound up publishing a 2000 paper in The American
Economic Review, the same journal that had run Card and Krueger's original. Wrote
Neumark and Wascher, "the New Jersey minimum-wage increase led to a 3.9-percent to
4.0 percent decrease in fast-food employment in New Jersey relative to the Pennsylvania
control group."
For the full story, please visit http://www.forbes.com/sites/susanadams/2011/08/31/obama-nominee-pulled-b....
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