Study Notes

What were some of the key economic ideas of Alan Kreuger?

A-Level, IB
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 16 Jul 2023

Alan Krueger, an American economist, made significant contributions to the field of labor economics and policy.

Here are some of his key economic ideas:

  1. Minimum Wage Effects: Krueger conducted extensive research on the effects of minimum wage policies. He examined empirical evidence to understand the impact of minimum wages on employment and earnings. His research challenged the conventional belief that minimum wage increases necessarily lead to significant job losses. Krueger's work provided insights into the complex relationship between minimum wages, employment, and labor market outcomes.
  2. Labour Demand and Education: Krueger's research focused on the relationship between education, skills, and labour market outcomes. He examined the demand for skilled labour and the effects of education on employment and wages. Krueger's work highlighted the importance of investing in education and skills development as a means to improve labour market outcomes and enhance economic productivity.
  3. Economics of Rock Music: Krueger applied economic analysis to the music industry, specifically focusing on the economics of rock music. His research examined the determinants of success in the music industry, including factors such as talent, market structure, and technological changes. Krueger's work shed light on the economic aspects of the music industry and provided insights into the factors influencing artists' careers.
  4. Economic Mobility: Krueger examined issues related to economic mobility and inequality. He conducted research on intergenerational income mobility, analyzing the factors that influence individuals' ability to move up the economic ladder over their lifetime. Krueger's work contributed to understanding the dynamics of economic mobility and the impact of inequality on economic opportunities.
  5. Behavioural Economics: Krueger incorporated insights from behavioural economics into his research. He examined the role of behavioral factors, such as biases and heuristics, in shaping individual decision-making and labor market outcomes. Krueger's work highlighted the limitations of traditional economic models and emphasized the importance of considering psychological factors in economic analysis.

Here are some of his notable works:

  • Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey (1994): This paper is a classic paper that uses a natural experiment to study the effect of the minimum wage on employment.
  • The Efficiency Wage Hypothesis (1991): This paper is a review article that discusses the efficiency wage hypothesis and the evidence for the hypothesis.
  • The Rise of Inequality (2007): This book is a book that discusses the causes and consequences of the rise of inequality in the United States.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.