Beyond the Debate

Abstract

This thesis explores the debate surrounding the impact of minimum wage increases on employment, dissecting the conflicting results and methodological divergences in the existing economic literature. It engages in a detailed meta-analysis of seminal studies, with a particular focus on how differing research methodologies and definitions of employment have contributed to the lack of consensus among economists. The analysis reveals that while some studies, like those by Card and Krueger (1994), find no negative effects on employment, others, such as Neumark and Shirley (2022), report significant adverse impacts, particularly on low-skilled and younger workers. This thesis examines the prevalent methodological approaches and highlights the role of controlling for spatial heterogeneity and the careful selection of control groups in assessing the true effects of minimum wage policies.