The Impact of Raising the Minimum Wage

[Marshal Jim Duncan]

Per Harvard Business School Study:

We study the impact of the minimum wage on firm exit in the restaurant industry, exploiting recent changes in the minimum wage at the city level. The evidence suggests that higher minimum wages increase overall exit rates for restaurants. However, lower quality restaurants, which are already closer to the margin of exit, are disproportionately impacted by increases to the minimum wage. Our point estimates suggest that a one dollar increase in the minimum wage leads to a 14 percent increase in the likelihood of exit for a 3.5-star restaurant (which is the median rating), but has no discernible impact for a 5-star restaurant (on a 1 to 5 star scale).


https://poseidon01.ssrn.com/deliver...6121009125099094112106124088098105102&EXT=pdf

 

[Rdcldad]

Per Harvard Business School Study:

We study the impact of the minimum wage on firm exit in the restaurant industry, exploiting recent changes in the minimum wage at the city level. The evidence suggests that higher minimum wages increase overall exit rates for restaurants. However, lower quality restaurants, which are already closer to the margin of exit, are disproportionately impacted by increases to the minimum wage. Our point estimates suggest that a one dollar increase in the minimum wage leads to a 14 percent increase in the likelihood of exit for a 3.5-star restaurant (which is the median rating), but has no discernible impact for a 5-star restaurant (on a 1 to 5 star scale).


https://poseidon01.ssrn.com/deliver...6121009125099094112106124088098105102&EXT=pdf

what are your thoughts?

 

[Marshal Jim Duncan]

what are your thoughts?

The ones I've stated on here probably at least a 1/2 dozen times?

 

[Rdcldad]

The ones I've stated on here probably at least a 1/2 dozen times?

so if you stated your thoughts a half dozen times this thread is basically you beating a dead horse?

 

[07pilt]

Come on guys. Same team. Keep it Civil.

 

[Bitter Creek]

so if you stated your thoughts a half dozen times this thread is basically you beating a dead horse?

It is just further proof that the horse that was pulling the liberal wage hike buggy should have been killed instead of the jobs.

 

[07pilt]

From Forbes of all places:

"In the case of Seattle, restaurant jobs have continued to grow in general at the pace they had for years."

"But, until more data is available, it looks like a higher minimum wage, at least at the $13 level in Seattle, hasn't hurt the continued historical availability of restaurant work."