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The Economic Effects of a Citywide Minimum Wage
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.
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Cites
How Much Should We Trust Differences-in-Differences Estimates?
Bertrand, M., Duflo, E., & Mullainathan, S. (2004) · The Quarterly Journal of Economics · doi:10.1162/003355304772839588 · Cited by 10,641
Cited by
Minimum wage effects across state borders: Estimates using contiguous counties
Dube, A., Lester, T. W., & Reich, M. (2010) · Review of Economics and Statistics · doi:10.1162/rest_a_00039 · Cited by 1,221
Self-citationNeumark, D., & Wascher, W. L. (2006) · Foundations and Trends® in Microeconomics · doi:10.1561/0700000015 · Cited by 472
ALLEGRETTO, S. A., DUBE, A., & REICH, M. (2011) · Industrial Relations: A Journal of Economy and Society · doi:10.1111/j.1468-232x.2011.00634.x · Cited by 379
Self-citationImperfect Competition in the Labor Market
Alan, M. (2011) · Handbook of Labor Economics · doi:10.1016/s0169-7218(11)02409-9 · Cited by 329
Metadata
- Authors
- Dube, A., Naidu, S., & Reich, M.
- Venue
- ILR Review
- Publisher
- SAGE Publications
- Published
- 2007-07
- Volume
- 60
- Issue
- 4
- Pages
- 522-543
- ISSN
- 0019-7939 (ISSN-L)
- 2162-271X
- OpenAlex
- W2150600455
- Cited by
- 182
- References
- 1
- FWCI
- 11.43
- Type
- journal article
- Language
- en
- Open access
- closed
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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