Minimum Wages and Employment¶
Card, D., & Krueger, A. (1994). Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania. American Economic Review.
Cited by¶
5 citations across 5 artifacts.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Comparative Statics
- Engineering trade studies. Solve a system of equilibrium equations (mechanical, thermal, electrical) at a design point, perturb a component specification, and re-solve for the new operating point; trade-study tables are literal comparative-statics outputs. Operations research and supply-chain design. Increase the lead time by a day, hold the demand distribution fixed, and re-compute the optimal base-stock level; the new policy is the new equilibrium. Policy analysis. Raise a minimum wage, assume the labour market re-clears, and read off the projected changes in employment, labour cost, and prices
This sourceEmpirical study challenging the standard comparative-statics prediction that a minimum-wage rise lowers employment; found no employment reduction relative to Pennsylvania. (
- Engineering trade studies. Solve a system of equilibrium equations (mechanical, thermal, electrical) at a design point, perturb a component specification, and re-solve for the new operating point; trade-study tables are literal comparative-statics outputs. Operations research and supply-chain design. Increase the lead time by a day, hold the demand distribution fixed, and re-compute the optimal base-stock level; the new policy is the new equilibrium. Policy analysis. Raise a minimum wage, assume the labour market re-clears, and read off the projected changes in employment, labour cost, and prices
- Counterfactual Subtraction
- Causal inference: placebo-subtracted treatment effect in randomised trials; difference-in-differences (a parallel-control unit's time-change subtracted); synthetic control (a weighted-control composite subtracted); regression adjustment (a conditional-mean subtracted); event studies (a pre-shock baseline subtracted).
This sourceCanonical difference-in-differences study using a parallel control group's (Pennsylvania) time-change as the subtracted counterfactual baseline for New Jersey.
- Causal inference: placebo-subtracted treatment effect in randomised trials; difference-in-differences (a parallel-control unit's time-change subtracted); synthetic control (a weighted-control composite subtracted); regression adjustment (a conditional-mean subtracted); event studies (a pre-shock baseline subtracted).
- Experimental Design
- This controls for unit-specific confounders that are constant over time, as Card and Krueger (1994) demonstrate in their canonical application to minimum-wage employment effects.
This sourcelandmark difference-in-differences study using a natural-experiment design (NJ minimum-wage rise vs. PA control) to estimate causal employment effects from observational data under explicit assumptions.
- This controls for unit-specific confounders that are constant over time, as Card and Krueger (1994) demonstrate in their canonical application to minimum-wage employment effects.
- Holdout Set
- Policy evaluation: pilot regions reserved as comparison groups; staged rollouts where later cohorts serve as held-out reality against early-cohort interpretations; difference-in-differences designs.
This sourceCanonical difference-in-differences policy evaluation using an untreated comparison region as held-out reality.
- Policy evaluation: pilot regions reserved as comparison groups; staged rollouts where later cohorts serve as held-out reality against early-cohort interpretations; difference-in-differences designs.
- Statistical Inference
- This design controls for time-invariant confounders and time-varying confounders that affect both cities equally.
This sourceLandmark difference-in-differences study: uses a natural-experiment design to estimate causal employment effects from observational data, illustrating how design plus statistical methods enable causal inference under explicit assumptions.
- This design controls for time-invariant confounders and time-varying confounders that affect both cities equally.
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Links previously used in the corpus¶
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