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Minimum Wage Channels of Adjustment
2011
Social Science Research Network
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The effects of minimum wage increases in 2007-2009 are analyzed using a sample of restaurants from Georgia/Alabama. Store-level payroll records provide precise measures of compliance costs. Examined are multiple adjustment channels. Exploiting variation in compliance costs across restaurants, we find employment and hours responses to be variable and in most cases statistically insignificant. Channels of adjustment to wage increases and to changes in non-labor costs include prices, profits, wage
doi:10.2139/ssrn.1967602
fatcat:ioirb5vxg5asbpkh5ilc7krb4y