Critique : Minimum Wages And Employment

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Final Project Part One
Kevin Nozari
Embry-Riddle Aeronautical University
MBAA 523
October 1, 2015

Critique: Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania
In this paper, we will be critiquing a research that was performed by Krueger D. Card. We will critically evaluate the researcher’s work by indentifying strengths, weaknesses, areas to improve, and possible extensions of the research. Other areas that will be discussed are research methods used, why the author selected the methods, what other methods could have been used, and why the other methods would have been applicable. The research that we will be reviewing is “Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania.” The article that we are critiquing is aimed to assess the blow of increased minimum wage from $4.25 to $5.05 per hour in 1992 on the employees working in fast-food restaurants in New Jersey and Pennsylvania. The author has shown two comparisons in this study. The first comparison is the employment growth rates at the fast food stores in New Jersey and Pennsylvania, before and after the minimum wage raise. The second comparison is the change in employment rate from fast food stores (in both states) that pay higher wages initially to the lower wage stores. Krueger Card concluded that there was no indication or signs that the minimum wage increase, decreased employment
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