A customer drives through a fast-food window while being handed food.

“The standard prediction is that a higher minimum wage reduces employment among low-wage workers. This column examines the effect of a rise in the minimum wage in California for workers at both large and small fast-food chains. Among smaller chains, employment, the number of establishments, and openings fell, while closures rose. The largest chains remained unchanged, indicating that the policy shifted California’s fast-food market towards its largest chains.”

Read in full, courtesy of the Centre for Economic Policy Research.

 

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