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

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter1: Introducing The Economic Way Of Thinking

Section1.6: Why Do Economists Disagree?

Problem 2.1YTE

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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.

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