NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Effect of the Minimum Wage When It Really Bites: A Reexamination of the Evidence from Puerto Rico

Alan B. Krueger

NBER Working Paper No. 4757
Issued in June 1994
NBER Program(s):   LS

This paper reinvestigates the evidence on the impact of the minimum wage on employment in Puerto Rico. The strongest evidence that the minimum wage had a negative effect on employment comes from an aggregate time series analysis. The weakest evidence comes from cross-industry analyses. The main finding of the paper, however, is that the statistical evidence of a negative employment effect of the minimum wage in Puerto Rico is surprisingly fragile.

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Document Object Identifier (DOI): 10.3386/w4757

Published: in Solomon Polachek(ed.), Research in Labor Economics, vol.14, (Greenwich, CT:JAI Press, 1995), pp.1-22.

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