David Card and Alan Krueger conducted a study of fast-food restaurants in New Jersey and Pennsylvania. The study found that
A) the earned income tax credit is more effective in raising the incomes of low-skilled workers than increases in the minimum wage.
B) increases in the minimum wage had a very small impact on employment.
C) there was a large reduction in employment of low-skilled workers when the minimum wage was raised in these states.
D) increases in the prices of food have a greater effect on wage increases in New Jersey than in Pennsylvania.
B
You might also like to view...
A negative externality will cause a private market to produce
a. less than is socially desirable. b. more than is socially desirable. c. exactly the quantity that is socially desirable. d. less than the same market would produce in the presence of a positive externality.
Firms may react to a payroll tax by
A. shifting to more capital intensive techniques. B. increasing workers' wages. C. increasing their output. D. substituting labor for capital.