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THE ECONOMIC EFFECTS OF A CITYWIDE MINIMUM WAGE.
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- Author(s): DUBE, ARINDRAJIT; NAIDU, SURESH; REICH, MICHAEL
- Source:
ILR Review; Jul2007, Vol. 60 Issue 4, p522-543, 22p, 15 Charts, 2 Graphs- Subject Terms:
- Source:
- Additional Information
- Subject Terms:
- Abstract: This paper presents the first study of the economic effects of a citywide minimum wage--San Francisco's adoption of an indexed 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. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of ILR Review is the property of Sage Publications Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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