Author Archives: Felix Field

Evaluating New York City’s Congestion Pricing: A Shift Toward Public Transportation

By Felix Field and Brandon Kahn

Congestion pricing is a relatively uncommon policy worldwide, but a few major cities—such as Stockholm, London, Milan, and New York—have implemented it in recent years. This policy charges drivers a toll for entering specific high-traffic areas. The primary goal is to reduce traffic congestion by discouraging personal vehicle use and encouraging public transportation. In addition to easing urban gridlock, congestion pricing can also improve air quality by lowering carbon emissions from cars and motorcycles. Although only a few cities have adopted it, congestion pricing has the potential to significantly enhance urban life if implemented effectively.

On January 5, 2025, New York City implemented congestion pricing. In the case of New York City, the tax is paid when you enter the “Congestion Relief Zone,” which covers all of Manhattan below 60th Street. The toll paid upon entering the zone is also based on the time of day, with higher prices during rush hour and lower prices during the late hours of the day. Additionally, the revenue generated by the tax will then go towards MTA improvements that will improve public transportation in the future. Overall, if the tax effectively reduces traffic and increases the use of public transportation, it would be extremely beneficial to New York City, and many other cities may also benefit from implementing such a policy. 

Among other cities that have already implemented congestion pricing, London has continued to see positive results after around 20 years of implementation. According to the U.S. Department of Transportation, “Congestion charging in London improves efficiency, reduces pollution, and raises revenue for transit improvements,” with automobile traffic having declined by about 20% compared to before congestion pricing. (Congestion pricing in London). Just like London, New York is a populous city with an effective public transportation system. By implementing congestion pricing, NYC could also see a reduction in pollution and traffic along with an increase in public revenue. Continue reading

How Do Minimum Wage Changes Impact Unemployment Rates?

By Felix Field and Brandon Kahn

What if a single government policy could change the lives of millions of workers overnight? The minimum wage was first established in 1938 through the Fair Labor Standards Act (FLSA), a key component of President Franklin D. Roosevelt’s New Deal. The New Deal aimed to revive the economy from the depths of the Great Depression and address the widespread struggles of workers seeking fair employment and livable wages. The FLSA marked an important early step in the federal government’s recognition of workers’ rights. Today, the minimum wage remains a major topic of debate, as many hold differing opinions on its potential economic impact. Some argue that raising it could cause inflation and higher unemployment rates. In contrast, others contend that it is a necessary tool for improving workers’ quality of life and reducing economic inequality.

We studied how state minimum wage changes might impact unemployment rates to find evidence of either a positive or negative impact on the economy using a method similar to that of economists Card and Krueger. David Card and Alan Krueger use a “natural experiment” method to study the impact of minimum wage changes on employment in New Jersey and Pennsylvania. In their study on the impact of minimum wage changes on employment, they looked at two similar states, New Jersey and Pennsylvania, with the only difference being New Jersey’s recent increase in state minimum wage. In these two states, they compared the employment numbers of fast food chains. Fast food chains were chosen as they are one of the biggest minimum wage employers. They found that employment numbers were relatively similar between the two states despite New Jersey’s minimum wage increase (Card and Krueger 776). These findings challenged the predominant economic theory, which said that raising the minimum wage would lead to higher unemployment. We hope to replicate a similar experiment to Card and Krueger’s using Delaware’s unemployment rate after minimum wage changes in 1988 compared to Maryland’s unemployment rate during the same time. Continue reading