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Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage
Abstract
The imposition of a national minimum wage standard provides a natural experiment in which the “treatment effect” varies across states depending on the fraction of workers initially earning less than the new minimum. The author exploits this fact to evaluate the effect of the April 1990 increase in the federal minimum wage on teenagers' wages, employment, and school enrollment. Comparisons of grouped and individual state data confirm that the rise in the minimum wage increased teenagers' wages. There is no evidence of corresponding losses in teenage employment or changes in teenage school enrollment.
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Citations
Cited by
The Effect of Minimum Wages on Low-Wage Jobs*
Cengiz, D., Dube, A., Lindner, A., & Zipperer, B. (2019) · The Quarterly Journal of Economics · doi:10.1093/qje/qjz014 · Cited by 2,688
Natural and Quasi-Experiments in Economics
Meyer, B. D. (1995) · Journal of Business & Economic Statistics · doi:10.1080/07350015.1995.10524589 · Cited by 1,100
Does Hospital Competition Save Lives? Evidence from the English NHS Patient Choice Reforms
Cooper, Z., Gibbons, S., Jones, S., & McGuire, A. (2011) · The Economic Journal · doi:10.1111/j.1468-0297.2011.02449.x · Cited by 490
Revisiting the Minimum Wage—Employment Debate: Throwing Out the Baby with the Bathwater?
Neumark, D., Salas, J. M. I., & Wascher, W. (2014) · ILR Review · doi:10.1177/00197939140670s307 · Cited by 474
Neumark, D., & Wascher, W. L. (2006) · Foundations and Trends® in Microeconomics · doi:10.1561/0700000015 · Cited by 472
Metadata
- Authors
- Card, D.
- Venue
- ILR Review
- Publisher
- SAGE Publications
- Published
- 1992-10
- Volume
- 46
- Issue
- 1
- Pages
- 22-37
- ISSN
- 0019-7939 (ISSN-L)
- 2162-271X
- OpenAlex
- W3023870743
- Cited by
- 633
- References
- 0
- FWCI
- 29.05
- Type
- journal article
- Language
- en
- Open access
- closed
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