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.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: CIC estimator; employment; minimum wage; nonlinear treatment effect models
• Subjects: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J38 - Public Policy; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C21 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J23 - Labor Demand

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