The Core

Why We Are Here => Economics & Investing => Topic started by: ergophobe on May 23, 2026, 10:32:49 PM

Title: California $20 fast food wage did not hurt employment
Post by: ergophobe on May 23, 2026, 10:32:49 PM
Findings from two studies so far

QuoteWe find that the policy increased average weekly wages for covered fast food workers
by about 11 percent and did not reduce employment. Compared to controls, prices
increased by 1.5 percent, equivalent to 6 cents for a $4 item. Employers passed about
50 percent of the higher wage costs to consumers as higher prices, consistent with a
monopsony model.

https://irle.berkeley.edu/wp-content/uploads/2025/09/Effects-of-a-20-Minimum-Wage-Evidence-from-Granular-Data-on-Wages-Employment-and-Prices-April-1-2026.pdf

https://shift.hks.harvard.edu/wp-content/uploads/2024/10/ca_fastfood_MW_Final.pdf


The second study notes: " We find no evidence that wage increases had unintended consequences on staffing, scheduling, or wage theft... Many California fast food workers continue to contend with underemployment and just-intime work schedules."

In other words, though the minimum wage law did not make this aspect of fast food employment worse, it didn't fix it either