Editing Minimum wage (section)

===David Card and Alan Krueger===
In 1992, the minimum wage in New Jersey increased from $4.25 to $5.05 per hour (an 18.8% increase), while in the adjacent state of Pennsylvania it remained at $4.25. [[David Card]] and [[Alan Krueger]] gathered information on fast food restaurants in New Jersey and eastern Pennsylvania in an attempt to see what effect this increase had on employment within New Jersey via a [[Difference in differences]] model. A basic supply and demand model predicts that relative employment should have decreased in New Jersey. Card and Krueger surveyed employers before the April 1992 New Jersey increase, and again in November–December 1992, asking managers for data on the full-time equivalent staff level of their restaurants both times.<ref name="Card & Krueger 1994">{{cite journal |first1=David |last1=Card |first2=Alan B. |last2=Krueger |title=Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania |journal=The American Economic Review |volume=84 |issue=4 |date=September 1994 |pages=772–93 |jstor=2118030|url=http://arks.princeton.edu/ark:/88435/dsp017d278t020 }}</ref> Based on data from the employers' responses, the authors concluded that the increase in the minimum wage slightly increased employment in the New Jersey restaurants.<ref name="Card & Krueger 1994" />

Card and Krueger expanded on this initial article in their 1995 book ''Myth and Measurement: The New Economics of the Minimum Wage''.<ref>{{cite book |last1=Card |first1=David E. |last2=Krueger |first2=Alan B. |title=Myth and measurement : the new economics of the minimum wage |date=2016 |publisher=Princeton University Press |location=Princeton, New Jersey |isbn=9780691169125 |edition=Twentieth-anniversary}}</ref> They argued that the negative employment effects of minimum wage laws are minimal if not non-existent. For example, they look at the 1992 increase in New Jersey's minimum wage, the 1988 rise in California's minimum wage, and the 1990–91 increases in the federal minimum wage. In addition to their own findings, they reanalyzed earlier studies with updated data, generally finding that the older results of a negative employment effect did not hold up in the larger datasets.<ref>{{cite journal | last1 = Card | last2 = Krueger | year = 2000 | title = Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania: Reply | journal = American Economic Review | volume = 90 | issue = 5| pages = 1397–420 | doi=10.1257/aer.90.5.1397| s2cid = 1140202 }}</ref> This had major implications on policy, challenging long-held economic views that increasing minimum wage led to [[deadweight loss]].