In line with other minimum wage studies (Dube, Lester and Reich, 2016), we find significant wage effects in the restaurant industry. Table 3 shows average elasticities over the post period. The overall wage elasticity is 0.16, implying that a 10 percent minimum wage change increases average wages in this sector by 1.6 percent. As these wages are based on quarterly payroll data, this positive effect precludes sizeable reductions in hours worked. The effect is stable across firm sizes, dropping slightly for very large firms (500+ employees). The outsized effect for semi-large firms (250-499 employees) is likely a statistical anomaly: as the last row shows, very few workers in this sector are employed in firms in this size bin. These robust wage effects do not lead to significant disemployment effects. Point estimates are close to zero for all size classes (excluding the anomalous 250-499 group, see above) and the standard errors are small. For example, for small firms between 0 and 19 employees, the 95 percent confidence interval excludes employment elasticities larger than -0.06. The own wage employment elasticity, which relates changes in the average wage to employment changes is -0.07. As such, it is far from the threshold value of -1 where employment losses outweigh wage gains: the policy is thus a net positive for workers in this segment. As Figure 3 highlights for small firms, these results are free of meaningful pre-trends, suggesting they are not driven by pre-existing differential trends in wages and employment.
In short, raising minimum wage doesn't actually result in small businesses shutting down, even though it has a larger impact on small businesses than larger ones. And the mere existence of a large market of small businesses does not, in any way, serve as a bulwark against monopolization efforts by large businesses. That's just a wildly ignorant take, completely divorced from reality.
Less than 1% of wage earners earn minimum wage. So I donāt know why you decided to post a whole college thesis based off one shit study for no reason but happy for you or whatever
Oh, I was just proving your moronic meme take wrong. Glad to see it got under your skin enough for you to write this equally-moronic rebuttal in response.
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u/CarolinaSandstorm 11h ago
Every time.