Can Rescheduling Explain the New Jersey Minimum Wage Studies?

Thomas Michl

Eastern Economic Journal, 2000, vol. 26, issue 3, 265-276

Abstract: This paper interprets the New Jersey minimum wage studies of Card and Krueger and their critics, Neumark and Wascher through a scheduling model. The former found an increase in the number of workers in New Jersey fast-food restaurants after the state minimum wage was increased, while the latter found a decline in the total payroll hours of New Jersey restaurants. The scheduling model predicts that firms will substitute workers for hours per worker after a wage increase, which is consistent with both studies. Evidence from a subset of restaurants which reported both workers and hours data to Neumark and Wascher supports this interpretation.

Keywords: Minimum Wage; Wage (search for similar items in EconPapers)
JEL-codes: J38 (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (33)

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Working Paper: Can Rescheduling Explain the New Jersey Minimum Wage Studies? (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:26:y:2000:i:3:p:265-276

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