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NJ and PA Once Again: What Happened to Employment When the PA–NJ Minimum Wage Differential Disappeared?
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- Author(s): Hoffman, Saul D.; Trace, Diane M.
- Source:
Eastern Economic Journal; Winter2009, Vol. 35 Issue 1, p115-128, 14p, 5 Charts- Subject Terms:
- Source:
- Additional Information
- Subject Terms:
- Abstract: Card and Krueger's analysis of the impact of the 1992 increase in the New Jersey (NJ) state minimum wage on employment in fast-food restaurants in NJ and Pennsylvania (PA) is very well known. In 1996 and 1997, the federal minimum wage was increased from $4.25 to $5.15, thereby increasing the minimum wage by $0.90 in PA but by just $0.10 in NJ. We use CPS data to examine the impacts of this increase on employment of likely minimum wage workers in the two states, using DID and DIDID estimators that exploit within-state and between-state comparisons. We find consistent evidence that employment of “at-risk” groups was negatively affected in PA relative to other groups in PA and to comparable groups in NJ.Eastern Economic Journal (2009) 35, 115–128. doi:10.1057/eej.2008.1 [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of Eastern Economic Journal is the property of Palgrave Macmillan Ltd. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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