David Card and Alan Kruger conducted a study of fast-food restaurants in New Jersey and Pennsylvania.The study found that
A) there was a large reduction in employment of low-skilled workers when the minimum wage was raised in these states.
B) the earned income tax credit is more effective in raising the incomes of low-skilled workers than increases in the minimum wage.
C) increases in the minimum wage had a very small impact on employment.
D) increases in the prices of food have a greater effect on wage increases in New Jersey than in Pennsylvania.

Question

Quizplus · Accepted Answer

The study found that increases in the minimum wage had a very small impact on employment. Option A is incorrect because the study did not find a large reduction in employment of low-skilled workers. Option B is not addressed by the study. Option D is not supported by the information given in the question.

David Card and Alan Kruger Conducted a Study of Fast-Food