I just came across this interesting research paper that ties raises in the minimum wage with a greater likelihood of low-rated restaurants going out of business:
We study the impact of the minimum wage on firm exit in the restaurant industry, exploiting recent changes in the minimum wage at the city level. We find that the impact of the minimum wage depends on whether a restaurant was already close to the margin of exit. Restaurants with lower ratings are closer to the margin of exit on average, and are disproportionately driven out of business by increases to the minimum wage. Our point estimates suggest that a one dollar increase in the minimum wage leads to a 10 percent increase in the likelihood of exit for a 3.5-star restaurant (which is the median rating on Yelp), but has no discernible impact for a 5-star restaurant (on a 1 to 5 star scale). We expand the analysis to look at prices using data from delivery orders, and find that lower rated restaurants also increase prices in response to minimum wage increases. Our analysis also highlights how digital data can be used to shed new light on labor policy and the economy.
cinepro wrote:So, would this be an expected consequence of raises in the minimum wage? And would those who support a higher minimum wage consider this a good thing?
Sure. We're talking about businesses that were doing so poorly they were already on the brink of collapse. Why should anyone be surprised by this? The restaurant business has always been a very risky business. Thousands of them go out of business every year with no benefit of minimum wage increases.
"We find that the impact of the minimum wage depends on whether a restaurant was already close to the margin of exit. Restaurants with lower ratings are closer to the margin of exit on average, and are disproportionately driven out of business by increases to the minimum wage. Our point estimates suggest that a one dollar increase in the minimum wage leads to a 10 percent increase in the likelihood of exit for a 3.5-star restaurant (which is the median rating on Yelp), but has no discernible impact for a 5-star restaurant (on a 1 to 5 star scale)."
They could have done this study before any minimum wage increase and came to the same conclusion. Businesses with poor ratings were far more likely to be driven out of business than 5 star restaurants.
It's best to hire illegals and pay under the table. This avoids annoying laws like minimum wage. The government will then decide who should be held accountable to the law and who gets a pass.
And when the confederates saw Jackson standing fearless as a stone wall the army of Northern Virginia took courage and drove the federal army off their land.
ajax18 wrote:It's best to hire illegals and pay under the table. This avoids annoying laws like minimum wage. The government will then decide who should be held accountable to the law and who gets a pass.
You mean like all those people working at Trump hotels?
You mean like all those people working at Trump hotels?
Nobody had a problem with anything Trump did until he promised to build the wall.
And when the confederates saw Jackson standing fearless as a stone wall the army of Northern Virginia took courage and drove the federal army off their land.
You mean like all those people working at Trump hotels?
Nobody had a problem with anything Trump did until he promised to build the wall.
Erm, it's more like no-one much knew about his employment practices and all the rest of it until he got, like Pres-Level famous?
Zadok: I did not have a faith crisis. I discovered that the Church was having a truth crisis. Maksutov: That's the problem with this supernatural stuff, it doesn't really solve anything. It's a placeholder for ignorance.
I don't care because Trump is for lowering my taxes and making our border less porous. Do you know of a candidate who is stronger on border enforcement than Trump? No you don't because there isn't one, not even amongst electable Republicans. It's like me asking you why you don't care that Al Sharpton cheats on his taxes? Sharpton wants to raise taxes and increase welfare handouts as a matter of public policy just as you do and so you support him. Why can't you understand that?
And when the confederates saw Jackson standing fearless as a stone wall the army of Northern Virginia took courage and drove the federal army off their land.
I don't care because Trump is for lowering my taxes and making our border less porous. Do you know of a candidate who is stronger on border enforcement than Trump? No you don't because there isn't one, not even amongst electable Republicans. It's like me asking you why you don't care that Al Sharpton cheats on his taxes? Sharpton wants to raise taxes and increase welfare handouts as a matter of public policy just as you do and so you support him. Why can't you understand that?
You only care until one of your own does it and then you're all about cognitive dissonance and excuse making. Your rant about porous borders is just flat out stupid. Trump isn't doing anything to strengthen the border he's only pretending to which only strengthens the stubbornness and ignorance among his followers. Your paranoia and hysteria about the border is all about your racist presuppositions that have been refuted left and right but to no avail because human garbage is always going to be human garbage.
Trump isn't doing anything to strengthen the border he's only pretending to which only strengthens the stubbornness and ignorance among his followers.
If that were true, the left wouldn't be fighting Trump so hard nor would they consider him such a threat.
And when the confederates saw Jackson standing fearless as a stone wall the army of Northern Virginia took courage and drove the federal army off their land.