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Topic: Social Issues
Number of pages / Number of words: 3 / 828
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Krueger and David Card of the University of California, Berkeley, found that in the eight months after New Jersey raised its minimum wage to $5.05 an hour from $4.25 in 1992, employment in fast-food restaurants grew slightly faster there than in Pennsylvania, where the minimum wage didn't change.

If there is a consequence to an increase in the federal minimum wage, it will more likely be seen in prices...


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Mr. Krueger and Mr. Card found that prices in restaurants in their study rose about 4 percent faster in New Jersey than they did in Pennsylvania. But that's unlikely to induce customers to stop eating fast food. If labor accounts for about 30 percent of total costs in fast-food chains, even assuming that everybody at the restaurant works for the minimum wage, an increase of 40 percent, before inflation, is likely to add less than 10 percent to the price of your burger over two years

The second point on minimum wage that was discussed by the New York Times magazine was under the title (“The Bare Minimum” by SARAH HAMERSMA, Published: March 8, 2007 The New York Times http://topics...


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