Minimum Wages and Employment: Fast-Food Industry in New Jersey and Pennsylvania
How do employers in a low-wage labor cent studies that rely on a similar compara market respond to an increase in the mini- tive methodology have failed to detect a mum wage? The prediction from conven- negative employment effect of higher minitional economic theory is unambiguous: a mum wages. Analyses of the 1990-1991 inrise in the minimum wage leads perfectly creases in the federal minimum wage competitive employers to cut employment and of an earlier increase in the in the 1970′s based on aggregate teenage minimum wage in California employment rates usually confirmed this find no adverse employment impact. A study prediction,’ earlier studies based on com- of minimum-wage floors in Britain reaches a affected establishments often did not.
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