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What happened after the fast-food pay raise in California? New data explains
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What happened after the fast-food pay raise in California? New data explains

phys.org·Hannah Morse·about 1 month ago
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Credit: Unsplash/CC0 Public Domain Fast-food workers in California may be earning more money, but their employers are cutting their hours to make up for the cost of higher pay. That's from a new study published in Applied Economic Letters in early March. Northeastern University postdoctoral research fellow Hitanshu Pandit, who was the author on the paper, used cellphone data to analyze the impact of a law that increased the Golden State's minimum wage for fast-food workers by 25%. Pandit found that the 2024 wage hike translated to an average 8% decrease in on-site staffing at California fast-food restaurants—that could have meant fewer workers on the floor, fewer hours offered or a mix of both. In other words, each dollar that the worker's wage increases results in a 3% reduction in staffing, Pandit found. The findings could have implications for how fast-food restaurant operators adjust their costs to stay in business.…

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