Do State Minimum Wage Laws Reduce Employment Mixed Messages from Fast Food Outlets in Illinois and Indiana Report as inadecuate




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In January 2004 and January 2005 the state of Illinois increased its minimum wage to $5.50 and then $6.50, well above the national minimum of $5.15. This study, comparing the impacts on Illinois fast food outlets to a control group of Indiana outlets, was conceived as a repetition of the Card-Krueger study of a similar situation in New Jersey. The central question is whether the Illinois outlets demonstrated a substantial reduction in employment in response to the higher legislated wage rates. We conclude that the Illinois-Indiana data lack the power to differentiate between a zero employment effect and a small negative employ-ment effect. Furthermore, we question the welfare significance of such a determination even if it could be convincingly made.

Subject(s): Food Security and Poverty

Labor and Human Capital

Issue Date: 2010

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/132449 Published in: Journal of Regional Analysis and Policy, Volume 40, Issue 2

Total Pages: 11

Record appears in: Mid-Continent Regional Science Association > Journal of Regional Analysis and Policy





Author: Persky, Joseph J. ; Baiman, Ron

Source: http://ageconsearch.umn.edu/record/132449?ln=en







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