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Minimum Wages and Employment: Replication of Card and Krueger (1994) Using the CIC Estimator

Ropponen, Olli (2010): Minimum Wages and Employment: Replication of Card and Krueger (1994) Using the CIC Estimator.

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Abstract

We employ the original Card and Krueger (1994) data and the CIC estimator to reexamine the evidence on the effect of minimum wages on employment. Our main finding is that the controversial result remains valid only for small fast-food restaurants. This finding is accompanied with a new possible explanation.

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