Minimum wage channels of adjustment

Arbeitspapier

The economic impact of the 2007-2009 increases in the federal minimum wage (MW) is analyzed using a sample of quick-service restaurants in Georgia and Alabama. Store-level biweekly payroll records for individual employees are used, allowing us to precisely measure the MW compliance cost for each restaurant. We examine a broad range of adjustment channels in addition to employment, including hours, prices, turnover, training, performance standards, and non-labor costs. Exploiting variation in the cost impact of the MW across restaurants, we find no significant effect of the MW increases on employment or hours over the three years. Cost increases were instead absorbed through other channels of adjustment, including higher prices, lower profit margins, wage compression, reduced turnover, and higher performance standards. These findings are compared with MW predictions from competitive, monopsony, and institutional/behavioral models; the latter appears to fit best in the short run.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 6132

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Demand and Supply of Labor: General ; Wages, Compensation, and Labor Costs: General
• Thema: minimum wages ; employment ; labor market adjustments ; labor market theories ; Mindestlohn ; Wirkungsanalyse ; Schnellgastronomie ; Anpassung ; Beschäftigungseffekt ; USA

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Hirsch, Barry T. ; Kaufman, Bruce E. ; Zelenska, Tetyana
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2011

Weitere Informationen

• Handle: http://hdl.handle.net/10419/58927
• URN: urn:nbn:de:101:1-201112136806
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ