We are interested to see whether the level of the minimum wage affects employment. In order...

We are interested to see whether the level of the minimum wage affects employment. In order to study this issue they got data from a random sample of 330 California fast food restaurants before and after an increase in the Californian minimum wage from $3.30 to $4.10 per hour. The change in full time equivalent employees per restaurant in the sample before and after the increase was 0.8 with a variance of 77.5.

Test whether this suggests the increase in the minimum wage had an effect on employment.

Expert Solution

This does not suggest that the increase in the minimum wage had an effect on employment.

orchestra answered 1 year ago

An economist is interested in whether the level of the minimum wage affects employment. In order...

An economist is interested in whether the level of the minimum wage affects employment. In order to study this issue they got data from a random sample of 322 New Jersey fast food restaurants before and after an increase in the NJ minimum wage from $4.25 to $5.05 per hour. The change in full time equivalent employees per restaurant in the sample before and after the increase was 0.80 with a variance of 77.5. Must not be done using excel....

We are interested in studying whether education level affects people's credit default risk (failing to pay...

We are interested in studying whether education level affects people's credit default risk (failing to pay their credit debt). A random study was conducted to see the percent of those who default on their credit card was conducted. Highest level of education attained % defaulted Number of people studied High School 36% 100 Some College 20% 160 Bachelor's degree 15% 180 Advanced degree 6% 50 Test the null hypothesis of whether the population proportions of credit default rate is the...

A researcher is interested in determining whether the illumination level in a room affects how quickly...

A researcher is interested in determining whether the illumination level in a room affects how quickly clients can be put into a trance. The time (in seconds) it took for five clients to go into a trance when it was done in a room that was lit with low light was measured, as was the time it took for the same clients to go into a trance in a brightly lit room. The theory being tested does not predict which...

What explains the positive relationship between wages and employment that we see with the wage-setting curve?

The Minimum Wage is a kind of government mandated price floor that affects the amount and...

The Minimum Wage is a kind of government mandated price floor that affects the amount and kind of labor hired compensation package employers use to determine output kind of employer mandated price floor. market based pricing system

We are discussing the minimum wage. The Fair Labor Standards Act establishing a national minimum wage...

We are discussing the minimum wage. The Fair Labor Standards Act establishing a national minimum wage was enacted in 1938. The minimum wage was set at 25¢ an hour. Here is a history of changes in federal minimum wage (source: https://bebusinessed.com/history/history-of-minimum-wage/) On this discussion board, discuss if the minimum wage should be eliminated, remain as is or be increased. Be specific with your position and support your position with facts, logic and specific examples.

Would the employment effect of a minimum wage be larger or smaller if the labor demand...

Would the employment effect of a minimum wage be larger or smaller if the labor demand elasticity with respect to wages is elastic (E < −1)? Briefly explain.

Explain what happens to the level of employment and the efficiency wage in each of the...

Explain what happens to the level of employment and the efficiency wage in each of the following cases. a. Due to technological advances, it becomes easier for firms to monitor their employees. b. Given new labor law requirements, it becomes more difficult for firms to lay off workers for non-shirking reasons. c. Given changes in manufacturing processes, workers are not required to exert as much effort on a day-to-day basis to complete their job tasks.

Minimum Wage Laws: The current federal minimum wage is $7.25. However, we have a wide variety...

Minimum Wage Laws: The current federal minimum wage is $7.25. However, we have a wide variety among laws enacted by the states across America. Take a look at this link https://www.dol.gov/whd/minwage/america.htm It is one the largest unresolved debates in Economics. On the one hand, the minimum wage creates a surplus of labor and creates more unemployment (often for the most unskilled labor). On the other hand, it provides a minimum sustainable living wage to people who have no chance of...

How does minimum wage affects turnover rate and what is the impact on turnover if the...

How does minimum wage affects turnover rate and what is the impact on turnover if the employers offering higher wages than the minimum?

Question