A growing number of cities and counties have recently raised their minimum wages. How employers respond to these mandates provides insight into the impact such policies might have on workers and local labor market. Drawing on two survey waves tracking initial responses to Seattle’s $15 Minimum Wage Ordinance by 439 employers with low-wage workers, we show how employers adjusted to higher wages. Most commonly, firms raised prices (56% reported this); smaller percentages reduced employee headcount or hours, limited internal wage progression, or took other measures. Single-site Seattle employers responded similarly to those with multiple sites. Food and accommodation sector employers were more likely to raise prices than firms in other sectors. Relative to other ownership structures, franchises disproportionately reported reducing their workforces. Very few employers reported withdrawing from Seattle. Overall, initial employer responses to this city-level minimum wage law align with predictions from the literature, findings that highlight trade-offs that policy makers must consider in future local wage regulation.
Research Summary: In addition to outsourcing the management of correctional facilities, many local and state authorities contract with private companies to provide a variety of services and processes within U.S. courthouses, jails, and prisons. In this article, we explore the various "cost points" at which individuals who make contact with public systems of justice are charged by private entities. We provide two case studies with an in-depth look at how private companies make money within U.S. justice facilitiescourt-ordered programs and prison services.
Policy Implications:Through our examples, we show the extent to which private companies generate profits within U.S. systems of justice and the potential impacts of justice "cost points" on those involved in these systems. We end by suggesting policy makers more thoroughly explore the reasons for the privatization of justice system practices and services and develop transparent oversight to ensure private arrangements do not impose undue burdens on justice-involved individuals and their families.
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