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#1 Hike in minimum wage prompts more closings of San Francisco restaurants04-18-2017, 03:08 PMSan 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
04-20-2017, 05:46 AM
- Join Date
- Apr 2017
- Central MO
As I remember this was forecast as the min wage debacle began.
04-20-2017, 06:14 PM
DDM502001 Welcome to the CU.
Your quite correct this was predicted, but liberals never listen.
04-21-2017, 06:56 AM
- Join Date
- Apr 2017
- Central MO
Sis in law was one of those crying out for a higher Min wage, she is now screaming as to why all the prices are rising so fast while she is on fixed retirement income!!
Stupid where stupid is as stupid does.
04-21-2017, 11:38 AM
From the linked article:
"The impact on exit is concentrated among lower quality restaurants, which are already closer to the margin of exit. This suggests that the ability of firms to adjust to minimum wage changes could differ depending on firm quality," the study found. The higher-rated restaurants can adjust, primarily through working their employees harder.
Higher minimum wages also reduce the rate at which new restaurants open by 4-6 percent per $1 increase in the minimum, the study found.
A. Unusual/innovative/ethnic restaurants are going to disappear;
B. Indie and family restaurant are going to gradually disappear;
C. Those entry-level jobs that get the less educated and youth started in the job market are going to get fewer in SF, and not be replaced;
D. Prices are going to skyrocket, not just due to increased costs, but also due to supply decreasing while demand remaining the same or possibly even growing.
If Peninsula cities like South San Francisco and Daly City use their heads they'll avoid SF's stupidity and experience a restaurant mini-boom. Not that I'd bet on it.I support UNexit: Get the US out of the UN; Get the UN out of the US!
BIG CHEETO Is Watching You!
Those who can, do.
Those who know, teach.
Ignorant incapables, regulate.
04-21-2017, 01:33 PM
I'm glad that this is not really an issue in Michigan. We've lost enough jobs over the past 40 years.
I do support a $10 an hour minimum wage for people over 18, and maybe $8 for 16-17 year olds. But not $15, businesses can't afford that.
04-21-2017, 02:01 PMThe price of freedom is something the protected will never know.
"Even if Trump didn't pay Russian hookers to pee on one another to defile a bed the Obamas once slept on it sounds like something he would do and that's all that matters." DemocratSinceBirth, Wed Jan 11, 2017, 09:32 AM
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