Minimum Wages and Employment: Replication of Card and Krueger (1994) Using the CIC Estimator

HEER Discussion Paper No. 289

17 Pages Posted: 10 Apr 2010 Last revised: 22 Jun 2010

See all articles by Olli Tapani Ropponen

Olli Tapani Ropponen

Government of the Republic of Finland - VATT Institute for Economic Research; University of Helsinki - Department of Political and Economic Studies

Date Written: April 8, 2010

Abstract

We employ the original Card and Krueger (1994) data and the CIC estimator to reexamine the evidence on the effect of minimum wages on employment. Our main finding is that the controversial result remains valid only for small fast-food restaurants. This finding is accompanied with a new possible explanation.

Keywords: CIC estimator, employment, minimum wage, nonlinear treatment effect

JEL Classification: C21, J23, J38

Suggested Citation

Ropponen, Olli Tapani, Minimum Wages and Employment: Replication of Card and Krueger (1994) Using the CIC Estimator (April 8, 2010). HEER Discussion Paper No. 289, Available at SSRN: https://ssrn.com/abstract=1586327 or http://dx.doi.org/10.2139/ssrn.1586327

Olli Tapani Ropponen (Contact Author)

Government of the Republic of Finland - VATT Institute for Economic Research ( email )

Arkadiankatu 7
P.O Box 1279
Helsinki, FIN-00531
Finland

University of Helsinki - Department of Political and Economic Studies ( email )

P.O. Box 54
FIN-00014 Helsinki
Finland

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