Transcription of Minimum Wages and Employment: A Case Study of the Fast ...
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Minimum Wages and Employment: A Case Study of the Fast ...
Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New jersey and Pennsylvania On April 1, 1992, New jersey 's Minimum wage rose from $ to $ per hour. To evaluate the impact of the law we surveyed 410 fast-food restaurants in New jersey and eastern Pennsylvania before and after the rise. Comparisons of employment growth at stores in New jersey and Pennsylvania (where the Minimum wage was constant) provide simple estimates of the effect of the higher Minimum wage . We also compare employment changes at stores in New jersey that were initially paying high Wages (above $5) to the changes at lower- wage stores. We find no indication that the rise in the Minimum wage reduced employment. (JEL 530, 523) 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 New Jersey Law A bill signed into law in November 1989 raised the federal minimum wage from $3.35 per hour to $3.80 effective April 1, 1990, with a further increase to $4.25 per hour on April 1, 1991. In early 1990 the New Jersey legislature went one step further, enacting parallel increases in the state minimum wage
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