NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Employment Effects of Minimum and Subminimum Wages: Reply to Card, Katz and Krueger

David Neumark, William Wascher

NBER Working Paper No. 4570
Issued in December 1993
NBER Program(s):   LS

In Neumark and Wascher (1992), we present findings supporting the earlier consensus that minimum wages reduce employment for teens and young adults, with elasticities in the range -0.1 to -0.2. In addition, we find that subminimum wages moderate these disemployment effects. Card, Katz and Krueger (1993) criticize numerous aspects of our analysis, and contest our conclusions. This reply presents an assessment of their arguments, as well as additional evidence related to some of the criticisms that they raise. We conclude that the issues raised by Card, et al., upon further examination, do not alter the conclusions from our original paper, and in some cases even reinforce those conclusions.

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Document Object Identifier (DOI): 10.3386/w4570

Published: Published as "Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws", ILRR, Vol. 46, no. 1 (1992): 55-81.

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