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Using data drawn from payroll records
for a set of restaurants initially assembled by Richard
Berman of the Employment Policies Institute
(EPI) and later supplemented by their own datacollection
efforts, Neumark and Wascher (hereafter,
NW) conclude that “... the New Jersey
minimum-wage increase led to a relative decline
in fast-food employment in New Jersey” compared
to Pennsylvania.1 They attribute the discrepancies
between their findings and ours to problems
in our fast-food restaurant data set. Specifically,
they argue that our use of employment data derived
from telephone surveys, rather than from
payroll records, led us to draw faulty inferences
about the effect of the New Jersey minimum
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