But surely that is an almost inevitable (benign and largely mathematical) result of increasing wages for the lower paid? Scott – I’ll take that post as agreement that the minimum wage is probably not the best solution to labor market problems. Who you would also expect potentially to have an impact. So, the biggest reduction in hours worked in the restaurant industry we found is amongst the lowest-paid workers. It is known as a social safety net – it is not so bad with low-paying jobs as long as healthcare, schools, and college are paid from the collective. No one said it is perfect but then incentives are intended to be unpleasant. So it was like a game of telephone. So, when we talk about the low-wage labor market, we are really focusing on jobs paying less than $19 an hour. For the large employers in Seattle, the current minimum wage is $16 an hour. It gave me the money so it could walk away from me.”. But I think in specifics it may not always be the case. At $0.75/hr., they have to send their six year old kids to go work for $0.25/hr. There is ultimately always a negative consequence to abusing your workforce. Russ Roberts: And that's consistent with other work I think that's been done out of--is it Texas A&M? Because they were commissioning a study of the impact of the minimum wage. Jacob Vigdor: Yeah. The next day, right wing guys eliminate the $9/hr. is it 6 years? Their parents will pay for them. So, if you are imagining a restaurant where you go, you sit down, someone comes to take your order--that person is on the clock; you have someone delivering your food--that person is on the clock; you have someone bussing your table--their hours are on the clock. And, normally, we'd say, 'Well, that's how the standard of living improves,' in the case of the App, because it's going to make it cheaper to provide a cup of coffee. Scott Solomon said ‘There exists no limit to obnoxious business models that are able to be dreamed-up if near-zero wage levels are permissible.” As there is no limit to the options even unskilled workers have when faced with the unlikely scenarios you are accusing business owners of imagining. It's basically less than 5%. But it's a study that looked at restaurants on the basis of their Yelp reviews. Soumis par Aggregation le lun, 03/25/2019 - 01:02 It comes down to politics and choice – what kinds of wage differentials are acceptable? Jacob Vigdor: Yeah: the difference is that it's a growing industry. But, in the period since about 2010, this city was growing really rapidly. Yeah. And this is actually the story--I mentioned a little while ago the conversation I had with the CEO of the Washington Restaurant Association. So, maybe this becomes a natural transition. It provides the customer with a really good experience. But, being the sole bidder, what ended up happening is that the folks in City Hall just sort of called us up and said, 'Okay. I was a little confused by this. OF COURSE the REAL reason his restaurant failed COULD NOT have possibly been that it was a completely horrible restaurant. Suppose the global wealth of this group was $150TR (I’m probably low-balling it). To wit, supply and demand does apply to labor markets, even at the low end. And I totally expect the restaurant of the future to have no brick and mortar whatsoever but rather just be a kitchen in a warehouse with 100% delivery via GrubHub or ubereats. So, it saves you time. Using a variety of methods to analyze employment in all sectors paying below a specified real hourly rate, we conclude that the second wage increase But what we do find is that the patterns of openings and closings are steering the city towards less labor intensive restaurants. 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