A Note on the Robustness of Card and Krueger (1994) and Neumark and Wascher (2000)

VATT Working Paper No. 25/2011

20 Pages Posted: 31 Oct 2011

See all articles by Olli Tapani Ropponen

Olli Tapani Ropponen

Government of the Republic of Finland - VATT Institute for Economic Research; University of Helsinki - Department of Political and Economic Studies

Date Written: June 14, 2011

Abstract

This note adds to the discussion originating from David Card and Alan B. Krueger (1994; CK) and David Neumark and William Wascher (2000; NW). It re-evaluates their results by using the semiparametric difference-in-differences estimator introduced by Alberto Abadie (2005). The re-evaluation suggests that the original results on the average employment effect in CK and NW are fairly robust, although the NW results are slightly diluted when taking into account the differences in the distributions of the observed covariates.

Keywords: employment, minimum wage, nonlinear treatment effect models

JEL Classification: C21, J23, J38

Suggested Citation

Ropponen, Olli Tapani, A Note on the Robustness of Card and Krueger (1994) and Neumark and Wascher (2000) (June 14, 2011). VATT Working Paper No. 25/2011, Available at SSRN: https://ssrn.com/abstract=1926105 or http://dx.doi.org/10.2139/ssrn.1926105

Olli Tapani Ropponen (Contact Author)

Government of the Republic of Finland - VATT Institute for Economic Research ( email )

Arkadiankatu 7
P.O Box 1279
Helsinki, FIN-00531
Finland

University of Helsinki - Department of Political and Economic Studies ( email )

P.O. Box 54
FIN-00014 Helsinki
Finland

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