Here is a superb analysis by John Kennan of the effect of the minimum wage on employment. It is a review of Card and Krueger’s book on minimum wage, a book that
extends their analysis that finds the minimum wage is good for
employment in fast food restaurants. Kennan finds the effect to be elusive, for reasons discussed in an earlier post.
If you don’t have access to Jstor, the article is from the December 1995 Journal of Economic Literature. If anyone out there has an online text version, I’d be happy to provide a few excerpts.
