Minimum Wage Effects

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The Effects of Minimum Wage on Unemployment
Colton Fambro
ECON 4311 – Econometrics and Forecasting
9 April 16, 2018
1. Executive Summary
The question being answered is what the effects of minimum wage on unemployment is in the year 2017. The final regression consisted of; minimum wage, average minimum wage of neighboring states, high school graduates, individuals with bachelor’s degrees, and state income tax rates. When the regression was run, it was discovered that minimum wage increases do have a negative effect on unemployment in the state itself, although it benefits the neighboring states. When then minimum wage of a state is increased, unemployment rates increase in that particular state. When the minimum wage of a state is increased, …show more content…
In 1992 New Jersey raised its minimum wage from $4.25 up to $5.05. They conducted their research on both before and after the minimum wage increase in both New Jersey and Pennsylvania of over 400 fast food restaurants. Through their research, they discovered that when they minimum wage was increased in New Jersey, the employment of new jersey decreased. Card and Kruger discovered “Stores that were unaffected by the minimum wage had the same employment growth as stores in Pennsylvania, while stores that had to increase their wages increased their …show more content…
(N.D.) The Effect of Minimum Wage and Unemployment across Varying Economic Climates Retrieved from https://smartech.gatech.edu/bitstream/handle/1853/52874/Castrejon_Greer_Lee_Final%20Draft.pdf

Abdeljawad A., Panjwani R, Ramani H (N.D.) Effects of Minimum Wage on Unemployment Rates Across the United States Retrieved from

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