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
Date Written: April 8, 2010
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: Suggested Citation