Studies look at what happened when cities raised minimum wage

The Seattle Times reports that “raising the minimum wage doesn’t have a drastic, negative impact on employment, according to university researchers who have studied pay hikes in other cities.

min wage impact on restaurants seattle times

“Ten years ago, San Francisco raised its minimum wage from $6.75 to $8.50 an hour, a 26 percent increase. Since then, it has gone up at regular intervals to its current $10.74 an hour, the highest big-city starting wage in the country. The city has slapped other mandates on businesses, including paid sick leave and a requirement to provide health-care coverage or pay into a pool for uninsured residents.

“What have the effects been on employment? Almost none, according to economists at the University of California, Berkeley, who have studied San Francisco, eight other cities that raised their minimum wages in the past decade, and 21 states with higher base pay than the federal minimum.

“Businesses absorbed the costs through lower turnover, small price increases at restaurants, which have a high concentration of low-wage workers, and higher worker productivity, the researchers found.”

Read the full story here

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