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Until About 10 Years Ago, Most Studies in Labor Economics

Question 27

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Until about 10 years ago, most studies in labor economics found a small but significant
negative relationship between minimum wages and employment for teenagers.Two labor
economists challenged this perceived wisdom with a publication in 1992 by comparing
employment changes of fast-food restaurants in Texas, before and after a federal
minimum wage increase.
(a)Explain how you would obtain external validity in this field of study,

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