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According to a working paper by Michael Reich and Denis Sosinskiy of the Institute for Research on Labor and Employment at the University of California, Berkeley, raising the minimum wage for fast-food workers to $20 led to an average pay increase of 18 percent per worker but did not reduce fast-food employment. Prices did go up, with some variation between chains and menu items, but the average increase of around 3.7 percent (“about 15 cents on a $4 hamburger,” as the Reich and Sosinskiy put it) was marginal. The researchers estimate consumers absorbed almost two-thirds of the increased costs.
There are some gaps in the new study. As anyone who’s worked a low-wage job knows, if they want to save money, employers may not cut workers’ hourly rate, but they will cut the number of hours they spend on the job. Reich and Sosinskiy didn’t assess the law’s impact on working hours, since the necessary data wasn’t available. But even with questions remaining, a little over a year since its passage, AB 1228 looks like a step toward fairness.
73 sats \ 3 replies \ @k00b 26 Oct
lol the change went in in April. I can’t tell why the author thinks all the effects have manifested already.
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Also the negative effect of minimum wages gets inflated away.
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💡
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I think he kind of acknowledged it, indirectly, but still, he preferred to go ahead with his preconceived opinion. Wishful thinking!
There are some gaps in the new study. As anyone who’s worked a low-wage job knows, if they want to save money, employers may not cut workers’ hourly rate, but they will cut the number of hours they spend on the job. Reich and Sosinskiy didn’t assess the law’s impact on working hours, since the necessary data wasn’t available. But even with questions remaining, a little over a year since its passage, AB 1228 looks like a step toward fairness.
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Lol looking forward to how they explain the cut in hours, people working more part time jobs, people not able to get into work because costs are so high so the most unskilled are relegated to unemployment as the semi skilled fight for any job left oh and then the taxes eroding that so called gain in wages ensuring they're not even walking home with that much
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if the business isnt making more money , they will just cut the hours or install more self service terminals. they raised the minimum wage in buglaria and it just causes massive problems for private business, the government slug workers love it though as the printer takes care of their shitty wages while shafting everyone else
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