Page 1 of 6 123 ... LastLast
Results 1 to 10 of 52

Thread: Yes Virginia, higher minimum wage kills jobs...

  1. #1
    tWebber seer's Avatar
    Join Date
    Jan 2014
    Location
    New England
    Faith
    Christian
    Gender
    Male
    Posts
    15,981
    Amen (Given)
    688
    Amen (Received)
    3180

    Yes Virginia, higher minimum wage kills jobs...

    No Duh!

    San Francisco's higher minimum wage is causing an increasing number of restaurants to go out of business even before it is fully phased in, a new study by the Harvard Business School found.


    The closings were concentrated among struggling, lower-rated restaurants. The higher minimum also caused fewer new restaurants to open, it found.

    "We provide suggestive evidence that higher minimum wage increases overall exit rates among restaurants, where a $1 increase in the minimum wage leads to approximately a 4 to 10 percent increase in the likelihood of exit," report Dara Lee and Michael Luca, authors of "Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit." The study used as a case study San Francisco, which has an estimated 6,000 restaurants in the Bay Area and is ratcheting up its minimum wage. Restaurants are one of the largest employers of minimum wage workers.

    http://www.washingtonexaminer.com/hi...rticle/2620454
    Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit

    Abstract
    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. The evidence suggests that higher minimum wages increase overall exit rates for restaurants. However, lower quality restaurants, which are already closer to the margin of exit, are disproportionately impacted by increases to the minimum wage. Our point estimates suggest that a one dollar increase in the minimum wage leads to a 14 percent increase in the likelihood of exit for a 3.5-star restaurant (which is the median rating), but has no discernible impact for a 5-star restaurant (on a 1 to 5 star scale).
    https://papers.ssrn.com/sol3/papers....act_id=2951110
    "Heaven offers nothing that the mercenary soul can desire. It is safe to tell the pure in heart that they shall see God, for only the pure in heart want to. There are rewards that do not sully motives. A man's love for a woman is not mercenary because he wants to marry her, nor his love for poetry mercenary because he wants to read it, nor his love of exercise less disinterested because he wants to run and leap and walk. Love, by definition, seeks to enjoy its object. C.S. Lewis

  2. #2
    tWebber Mountain Man's Avatar
    Join Date
    Jan 2014
    Location
    United States
    Faith
    Christian
    Gender
    Male
    Posts
    5,961
    Amen (Given)
    3162
    Amen (Received)
    3007
    Restaurants have the slimmest profit margins and are always the hardest hit by arbitrary wage increases.
    Some may call me foolish, and some may call me odd
    But I'd rather be a fool in the eyes of man
    Than a fool in the eyes of God


    From "Fools Gold" by Petra

  3. Amen Bill the Cat, RumTumTugger amen'd this post.
  4. #3
    Troll Magnet Sparko's Avatar
    Join Date
    Jan 2014
    Faith
    Christian
    Gender
    Male
    Posts
    29,436
    Amen (Given)
    2426
    Amen (Received)
    14416
    Pretty much the outcome we said back when we were arguing with the liberals about the hike.

  5. Amen Bill the Cat amen'd this post.
  6. #4
    tWebber Meh Gerbil's Avatar
    Join Date
    Jan 2014
    Faith
    circular balloonist
    Gender
    Male
    Posts
    4,164
    Amen (Given)
    1438
    Amen (Received)
    2344
    It is San Francisco so it is liberals who voted for that type of thing living with the results of their own foolishness.
    I'm okay with people living with the results of their own ideas - as long as it stays there I think that is fine.
    Actually YOU put Trump in the White House. He wouldn't have gotten 1% of the vote if it wasn't for the widespread spiritual and cultural devastation caused by progressive policies. There's no "this country" left with your immigration policies, your "allies" are worthless and even more suicidal than you are and democracy is a sick joke that I hope nobody ever thinks about repeating when the current order collapses. - Darth_Executor striking a conciliatory note in Civics 101

  7. Amen Bill the Cat, Sparko amen'd this post.
  8. #5
    Professor Catholicity's Avatar
    Join Date
    Jan 2014
    Location
    the neighbor of the yellow brick road
    Faith
    Ecumenical Christian
    Gender
    Female
    Posts
    3,618
    Amen (Given)
    1045
    Amen (Received)
    1458
    increase wage=increase food price
    A happy family is but an earlier heaven.
    George Bernard Shaw

  9. #6
    Evolution is God's ID rogue06's Avatar
    Join Date
    Jan 2014
    Location
    Southeastern U.S. of A.
    Faith
    Christian
    Gender
    Male
    Posts
    29,766
    Amen (Given)
    681
    Amen (Received)
    11895
    Quote Originally Posted by seer View Post
    No Duh!
    Not to mention that those who stay open will get by with a smaller staff.

    I'm always still in trouble again

  10. #7
    tWebber Starlight's Avatar
    Join Date
    Feb 2014
    Location
    New Zealand
    Faith
    Atheist
    Gender
    Male
    Posts
    5,401
    Amen (Given)
    1874
    Amen (Received)
    1183
    The OP study is misleading. A higher minimum wage tends to create as many new jobs as it kills old ones. The study only tells half the story because it found that it killed a few restaurant jobs. It didn't study what new jobs were created. (The people getting paid more money then spend that money on goods, which means other companies employ more staff to cover the increased demands for services and products)

    As I've posted before, whether minimum wage does or doesn't kill jobs is something that has been heavily studied, and here is a graph from a meta-analysis (that summed up other studies):


    Each dot on that graph represents a scientific study done on the subject, with the more accurate studies higher up the y-axis, and job losses / gains observed on the x-axis. It turns out the distribution is centered around zero change in the job market, with all the most accurate studies giving that result.

  11. #8
    tWebber Mountain Man's Avatar
    Join Date
    Jan 2014
    Location
    United States
    Faith
    Christian
    Gender
    Male
    Posts
    5,961
    Amen (Given)
    3162
    Amen (Received)
    3007
    So at best, raising the minimum accomplishes nothing, and at worst, it puts people out of work. Now there's a ringing endorsement.

  12. #9
    tWebber Starlight's Avatar
    Join Date
    Feb 2014
    Location
    New Zealand
    Faith
    Atheist
    Gender
    Male
    Posts
    5,401
    Amen (Given)
    1874
    Amen (Received)
    1183
    Quote Originally Posted by Mountain Man View Post
    So at best, raising the minimum accomplishes nothing, and at worst, it puts people out of work.
    At best it causes people on the low end of the economy to earn enough to live on, and stimulates economic growth. At worst it causes a little bit of inflation. There's not really any downsides to raising the minimum wage. As Australia has shown you can pretty much push the minimum wage through the roof without serious consequences.

  13. Amen Charles amen'd this post.
  14. #10
    tWebber Meh Gerbil's Avatar
    Join Date
    Jan 2014
    Faith
    circular balloonist
    Gender
    Male
    Posts
    4,164
    Amen (Given)
    1438
    Amen (Received)
    2344
    Quote Originally Posted by Starlight View Post
    At best it causes people on the low end of the economy to earn enough to live on, and stimulates economic growth. At worst it causes a little bit of inflation. There's not really any downsides to raising the minimum wage. As Australia has shown you can pretty much push the minimum wage through the roof without serious consequences.
    What is the minimum wage in Australia?

    I've relatives (on the wife's side) from Norway that came over and talked about minimum wage over there. Apparently you can make a good living just being a waiter in a restaurant. As nice as that is they also talked about how a pizza and 4 beers costs them $60.00. Over here I could get that half that price.

    If I could make what I make now while just being a waiter I'd quit I.T. work and be a waiter.
    I don't need the stress of I.T.
    Actually YOU put Trump in the White House. He wouldn't have gotten 1% of the vote if it wasn't for the widespread spiritual and cultural devastation caused by progressive policies. There's no "this country" left with your immigration policies, your "allies" are worthless and even more suicidal than you are and democracy is a sick joke that I hope nobody ever thinks about repeating when the current order collapses. - Darth_Executor striking a conciliatory note in Civics 101

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •