The Economic Impacts of a Citywide Minimum Wage
Arindrajit Dube,
Suresh Naidu and
Michael Reich
Institute for Research on Labor and Employment, Working Paper Series from Institute of Industrial Relations, UC Berkeley
Abstract:
This paper presents the first study of the economic effects of a citywide minimum wage— San Francisco’s adoption of a minimum wage, set at $8.50 in 2004 and $9.14 by 2007. Compared to earlier benchmark studies by Card and Krueger and by Neumark and Wascher, this study surveys table-service as well as fast-food restaurants, includes more control groups, and collects data for more outcomes. The authors find that the policy increased worker pay and compressed wage inequality, but did not create any detectable employment loss among affected restaurants. The authors also find smaller amounts of measurement error than characterized the earlier studies, and so they can reject previous negative employment estimates with greater confidence. Fast-food and table-service restaurants responded differently to the policy, with a small price increase and substantial increases in job tenure and in the proportion of full-time workers among fast-food restaurants, but not among table-service restaurants.
Keywords: Living; Wage; Policies (search for similar items in EconPapers)
Date: 2007-06-29
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)
Downloads: (external link)
https://www.escholarship.org/uc/item/2r84736j.pdf;origin=repeccitec (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:cdl:indrel:qt2r84736j
Access Statistics for this paper
More papers in Institute for Research on Labor and Employment, Working Paper Series from Institute of Industrial Relations, UC Berkeley Contact information at EDIRC.
Bibliographic data for series maintained by Lisa Schiff ().