Payroll, Revenue, and Labor Demand Effects of the Minimum Wage

Jardim, Ekaterina; Inwegen, Emma van

doi:10.17848/wp19-298

Cited by 15 publications

(11 citation statements)

References 36 publications

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“…In-depth interviews with workers, nonprofits leaders, and for-profit employers produced for other parts of the Seattle Minimum Wage Study corroborate survey findings reported here (The Seattle Minimum Wage Study Team 2016, 2017b). Our findings also align with analyses of UI administrative data to assess the impact of the minimum wage ordinance in Seattle (Jardim et al 2017; Jardim and van Inwegen 2017).…”

Section: Limitationssupporting

confidence: 80%

Employer Responses to a City-Level Minimum Wage Mandate: Early Evidence from Seattle

Romich

Allard

Obara

et al. 2018

Urban Affairs Review

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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.

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Section: Limitationssupporting

confidence: 80%

Employer Responses to a City-Level Minimum Wage Mandate: Early Evidence from Seattle

Romich

Allard

Obara

et al. 2018

Urban Affairs Review

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“…For a detailed analysis of the effect of the Ordinance on firm behavior, seeJardim and van Inwegen (2018).…”

mentioning

confidence: 99%

Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle

Jardim¹,

Long²,

Plotnick³

et al. 2017

Self Cite

135

137

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This paper evaluates the wage, employment, and hours effects of the first and second phase-in of the Seattle Minimum Wage Ordinance, which raised the minimum wage from $9.47 to as much as $11 in 2015 and to as much as $13 in 2016. Using a variety of methods to analyze employment in all sectors paying below a specified real hourly wage rate, we conclude that the second wage increase to $13 reduced hours worked in low-wage jobs by 6-7 percent, while hourly wages in such jobs increased by 3 percent. Consequently, total payroll for such jobs decreased, implying that the Ordinance lowered the amount paid to workers in low-wage jobs by an average of $74 per month per job in 2016. Evidence attributes more modest effects to the first wage increase. We estimate an effect of zero when analyzing employment in the restaurant industry at all wage levels, comparable to many prior studies.

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“…Early UW-MWS work on employment outcomes draw on these UI data (Jardim, Long, Plotnick, van Inwegen, Vigdor, and Wething 2017a, 2017b, 2017cJardim and van Inwegen, 2017). Jardim et al (2017a) finds that the Ordinance prompted a reduction in "hours worked in low-wage jobs by around 9 percent, while hourly wages in such jobs increased by around 3 percent.…”

Section: Washington State Ui Data and Findings To Datementioning

confidence: 99%