Card and Krueger?s (1995a) meta-analysis of the employment effects of minimum wages challenged existing theory. Unfortunately, their meta-analysis confused publication selection with the absence of a genuine empirical effect. We apply recently developed meta-analysis methods to 64 US minimum wage studies and corroborate that Card and Krueger?s findings were nevertheless correct. The minimum wage effects literature is contaminated by publication selection bias, which we estimate to be slightly larger than the average reported minimum-wage effect. Once this publication selection is corrected, little or no evidence of a negative association between minimum wages and employment remains.
History
Pagination
1-42
Language
eng
Notes
School working paper (Deakin University. School of Accounting, Economics and Finance) ; 2008/14
Card and Krueger?s (1995a) meta-analysis of the employment effects of minimum wages challenged existing theory. Unfortunately, their meta-analysis confused publication selection with the absence of a genuine empirical effect. We apply recently developed meta-analysis methods to 64 US minimum wage studies and corroborate that Card and Krueger?s findings were nevertheless correct. The minimum wage effects literature is contaminated by publication selection bias, which we estimate to be slightly larger than the average reported minimum-wage effect. Once this publication selection is corrected, little or no evidence of a negative association between minimum wages and employment remains.
Publication classification
CN.1 Other journal article
Copyright notice
2008, The Authors
Publisher
Deakin University, School of Accounting, Economics and Finance
Place of publication
Geelong, Vic.
Series
School Working Paper - Economics Series ; SWP 2008/14