How do more recent empirical studies compare with earlier studies in terms of methodology? a. Earlier studies examined the impact of raising the federal minimum wage whereas more recent studies focus on the impact of increases in the minimum wage by individual states b. Earlier studies examined the impact of individual states raising their minimum wage whereas more recent studies focus on the impact of increases in the federal minimum wage c. Earlier studies examined the impact of increases in the minimum wage on employment, but more recent studies focus on the effect of increases in the minimum wage on hours worked d. Earlier studies focused on the impact of increases in the minimum wage on teenagers whereas more recent studies focus on the impact of increases in the minimum wage on all workers The earliest studies of the employment effects of minimum wages used only national variation in the U.S. minimum wage. They found elasticities between −0.1 and −0.3 for teens ages 16–19, and between −0.1 and −0.2 for young adults ages 16–24. An elasticity of −0.1 for teens, for example, means that a 10% increase in the wage floor reduces teen employment by 1%. Newer research used data from an increasing number of states raising their minimum wages above the federal minimum. The across-state variation allowed comparisons of changes in youth employment between states that did and did not raise their minimum wage. This made it easier to distinguish the effects of minimum wages from those of business cycle and other influences on aggregate low-skill employment. An extensive survey by Neumark and Wascher (2007) concluded that nearly two-thirds of the more than 100 newer minimum wage studies, and 85% of the most convincing ones, found consistent evidence of job loss effects on low-skilled workers

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter19: Labor And Entrepreneurship: The Human Inputs

Section: Chapter Questions

Problem 8DQ

See similar textbooks

Related questions

Question

How do more recent empirical studies compare with earlier studies in terms of methodology?

a. Earlier studies examined the impact of raising the federal minimum wage whereas more recent studies focus on the impact of increases in the minimum wage by individual states

b. Earlier studies examined the impact of individual states raising their minimum wage whereas more recent studies focus on the impact of increases in the federal minimum wage

c. Earlier studies examined the impact of increases in the minimum wage on employment, but more recent studies focus on the effect of increases in the minimum wage on hours worked

d. Earlier studies focused on the impact of increases in the minimum wage on teenagers whereas more recent studies focus on the impact of increases in the minimum wage on all workers

The earliest studies of the employment effects of minimum wages used only national variation in the U.S. minimum wage. They found elasticities between −0.1 and −0.3 for teens ages 16–19, and between −0.1 and −0.2 for young adults ages 16–24. An elasticity of −0.1 for teens, for example, means that a 10% increase in the wage floor reduces teen employment by 1%. Newer research used data from an increasing number of states raising their minimum wages above the federal minimum. The across-state variation allowed comparisons of changes in youth employment between states that did and did not raise their minimum wage. This made it easier to distinguish the effects of minimum wages from those of business cycle and other influences on aggregate low-skill employment. An extensive survey by Neumark and Wascher (2007) concluded that nearly two-thirds of the more than 100 newer minimum wage studies, and 85% of the most convincing ones, found consistent evidence of job loss effects on low-skilled workers.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

Empirical studies that have examined the longer-term effects of increasing the minimum wage

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.