09 Jul Card and Krueger study.
Card and Krueger study.
a. Prior to Card and Krueger, what was the traditional view
regarding minimum wages? Did minimum wages lead to large
labor displacement effects in the traditional view?
b.What was the design of the Card and Krueger study? Which
states were involved with the study, and what event did they consider? What was the minimum wages in each state before and after the policy changes?
c.What were the before and after results in the two states on employment? How did the policy change affect employment in each state before and after?
d.Summarize the evidence since Card and Krueger about minimum wages. Do Card and Krueger convince the economics discipline that minimum was have no effect on employment? If so, how? If not, how does their study change the minimum wage debate?
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