Answer question Essay Example | Topics and Well Written Essays - 250 words - 13

Answer question - Essay Example For the study to have reliable findings, the authors provided allowances for other sources of variation in employment including differences across the chains. To get such variation, the main equations used were as indicated below. The study found that 18 percent increase in the New Jersey minimum wage was predicted to reduce employment at fast foods outlets by 0.4-1.0 employees per store (David and Alan, 1994). Secondly, the study revealed that even in local areas, employment rose faster at the stores that increased wages due to the minimum wage. Thirdly, the paper found that relative price changes played a role within the fast food industry as the result of raising the minimum wage. One of the aspects that make this study to have counter intuitive result is that when minimum wage is raised, low skill workers retain their jobs. Additionally, it is one of the ways of attaining minimal standard of living. David, C and Alan, K. (1994). Minimum Wages and Employment: A Case Study of the Fat-Food Industry in New Jersey and Pennsylvania. The American Economic Review, Volume 84, Issue 4 (Sept., 1994),