CA min wage for restaurant workers

[mspart]

https://thedailyeconomy.org/article/new-study-californias-20-minimum-wage-killed-18000-restaurant-jobs/

New Study: California’s $20 Minimum Wage Killed 18,000 Restaurant Jobs

The authors estimate that the negative employment effect is anywhere from -2.3 to -3.9 percent, (as compared to all states, or just to states with no minimum wage changes). Relative to a world where California did not increase the minimum wage, 18,000 jobs were lost. 

This is a large number, but it’s even more jarring when you realize how limited this law change was. Again, this bill only applied to restaurants with over 60 locations, so many other low-wage jobs were exempted. Even within the restaurant industry, implementation was limited.

In other words, those 18,000 more unemployed workers were the victims of a relatively limited change. This large drop puts talks of a national “living wage” — often proposed as $15 or more — in serious doubt. California has a relatively high cost of living, which means all else being constant, a $20 minimum wage would have an even larger unemployment effect where average wages are lower.

Very interesting.   18k jobs lost due to good intentions.   Another D fiasco.

mspart

 

[El Luchador]

They really are not smart people.  They have destroyed far more lives than they have improved. 

[reversaloffortune]

With cost of living being so high in CA, the minimum wage should be 20/hr across the board.

[ionel]

29 minutes ago, reversaloffortune said:

With cost of living being so high in CA, the minimum wage should be 20/hr across the board.

Because at $20/hr you can afford housing in CA or do you want fewer jobs thus more folks moving out of CA or more homeless? 

[Bigbrog]

1 hour ago, reversaloffortune said:

With cost of living being so high in CA, the minimum wage should be 20/hr across the board.

What is the reason the cost of living is so high in CA??  And no, the minimum wage shouldn't!

[reversaloffortune]

It's always funny to see people arguing against an increased minimum wage.  That would be the kind of tide that lifts all boats wouldn't it?

[ionel]

12 minutes ago, reversaloffortune said:

It's always funny to see people arguing against an increased minimum wage.  That would be the kind of tide that lifts all boats wouldn't it?

Well except for the 18,000 who lost their jobs.  

[reversaloffortune]

California employs well over 750,000 fast food workers and 1.8 million in the restaurant industry. 18,000 employees represents a 1 to 3 percent job loss in the industry. How of of that attrition is due to automation? Can't blame it all on minimum wage increases.

[ionel]

12 minutes ago, reversaloffortune said:

California employs well over 750,000 fast food workers and 1.8 million in the restaurant industry. 18,000 employees represents a 1 to 3 percent job loss in the industry. How of of that attrition is due to automation? Can't blame it all on minimum wage increases.

Did you read the article?  As the red viking would say - do you have a PhD in economics?  

[El Luchador]

1 hour ago, reversaloffortune said:

It's always funny to see people arguing against an increased minimum wage.  That would be the kind of tide that lifts all boats wouldn't it?

not always as simple as you think. 

 

 

[El Luchador]

 

 

 

[Offthemat]

It happens every time.  What’s that definition of insanity, again?

And the increase didn’t apply to all restaurants, just above a certain size, and some of them got waivers. 

Edited yesterday at 02:59 AM by Offthemat