A Note on the Robustness of Card and Krueger (1994) and Neumark and Wascher (2000)

Olli Ropponen

No 25, Working Papers from VATT Institute for Economic Research

Abstract: This note adds to the discussion originating from David Card and Alan B. Krueger (1994; CK) and David Neumark and William Wascher (2000; NW). It re-evaluates their results by using the semiparametric difference-in-differences estimator introduced by Alberto Abadie (2005). The re-evaluation suggests that the original results on the average employment effect in CK and NW are fairly robust, although the NW results are slightly diluted when taking into account the differences in the distributions of the observed covariates.

Keywords: Employment, minimum wage, nonlinear treatment effect models, Labour market, Työmarkkinat, Taxation and Social Transfers, Julkisen talouden rahoitus ja tulonsiirrot, C210 - Econometric Methods: Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models, J230 - Employment Determination; Job Creation; Demand for Labor; Self-Employment, J380 - Wages, Compensation, and Labor Costs: Public Policy (wage subsidies, minimum wage legislation), (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-lab and nep-lma
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Citations: View citations in EconPapers (1)

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https://www.doria.fi/handle/10024/148764

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Journal Article: A note on the robustness of Card and Krueger (1994) and Neumark and Wascher (2000) (2014)
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