Opinion: ‘Natural experiments’ lead to an economics Nobel
- October 11, 2021
- David Neumark, economics, The Wall Street Journal, Oct. 11, 2021 (Opinion)
Messrs. [David] Card and [Alan B.] Krueger conducted a famous natural experiment by studying employment at fast-food restaurants in New Jersey and Pennsylvania before and after New Jersey raised the minimum wage while Pennsylvania didn’t. … University of California Irvine economist [and Distinguished economics professor] David Neumark and Federal Reserve economist William L. Wascher, using the restaurants’ payroll data, found what most economists would have expected: The minimum wage increase in New Jersey caused employment to fall in the New Jersey restaurants relative to Pennsylvania restaurants’ employment.
For the full story, please visit https://www.wsj.com/articles/natural-experiments-lead-economics-nobel-prize-11633986097.