vigdor seattle minimum wage

In fact in the Jamie Galbraith podcast, he use the line, “contrary to supply and demand trained economist…” implying there’s some other school of economic thought that doesn’t run on supply and demand. But then, since the 1980s, people are actually coming back to the city. A couple of different studies. And that goes back to the Card and Krueger paper in 1994 which compared Pennsylvania and New Jersey. Or is that not the case? In the 60s, businesses and buses mostly used the same schedule, but today bus schedules are cut back, but business hours have expanded, especially for low wage jobs. Jacob Vigdor: Yeah. Or is that the result of something else? The waitstaff walked back and forth, completely ignoring me, without so much as an “I’ll be with you shortly”. How do you define--, Jacob Vigdor: Yeah--this was another challenge--. There hasn't been that much time for employers to respond. This “alternative model” of price and labor supply is never taught in “Econ 101,” which describes the labor supply curve as linear and monotonically upward-sloping. If they DO pay with a bank loan, the wealth tax is only 2.5%/yr. Maybe not a bad deal? We were trying to commit ourselves to writing down a specification before we conducted the analysis. April 2, 2016 at 4:01 pm. But, may just take too much time. What's the big deal? Our data have names and Social Security numbers for everyone. It would require a massive coordination among all of the major countries… Including your Caribbean islands iand Irelandthat who areare purposely used as shells to avoid taxation. Does “price fixing” refer to a group of workers that manages to get organized to negotiate a contract with an employer for a stipulated wage? This all sounds good to me. But that does not follow, then, that most low-wage workers are in the restaurant business. It's a hot topic. guys still have to work 3 jobs, so eventually they’re exhausted, show up late, get fired, go hungry, then get re-hired for $2/hr. Do you see them doing something else with fewer hours? You can be productive starting from Day 1 on the job. So, the classic way to do this in the minimum wage literature is to compare the place that raises the minimum wage to someplace next door. This was just the data talking. save labor, and b). Is that right? Maybe not high-paying in the software engineer scope, but certainly a lot higher than a federal minimum wage rate. And then the people who are earning higher wages--the people who are actually cooking the food and who do the customer service tasks like taking the orders at the counter--they are going to tend to be higher-paid because you need a slightly higher skill level to do something like, you know, cook food to order. And this is actually the story--I mentioned a little while ago the conversation I had with the CEO of the Washington Restaurant Association. And, you know, as economists we tend to talk about skills. And then there's just a cup there that has your drink inside. Also, since UBI is “universal,” a lot of money is being wasted when the $60k/yr+ guys are also getting UBI. And that's measured both in terms of population and in terms of employment. We tried different versions of the analysis, trying anything from $15 to $25. Is that the issue? A married couple of full-time $15/hr workers would have a household income of $62,400. But the Number 1 skill that you can have as a dishwasher is experience being a dishwasher. … So, we looked at the scope of work that the City had put into this Request for Proposals. It just means that the lower paid jobs aren’t so low paid any more, so there are fewer jobs beneath any given “low” threshold. There are places where the legal minimum has been too low (california )and businesses have been forced to bid up wages to entice even those unskilled workers. more to eradicate poverty, etc. Which would be important? Additional ideas and people mentioned in this podcast episode: A few more readings and background resources: Enter your email address to subscribe to our monthly newsletter: Intro. So, why don't we just sort of get this project started with a little bit of seed money from the City; and then we'll go out and see if we can raise some more money?'. Jacob Vigdor: So, what we've done, over the past few years--it's a multi-faceted, multi-disciplinary effort to study the minimum wage. And, no, those traits are not inculcated by school. Do you know many people in the non-profit industry? SUPPOSE nearly 100% of people and businesses with $50MM+ in net assets increased those assets at 5%/yr. On average they were taking home–not necessarily taking home, but their paychecks were reflecting an extra about $20 a week. Jacob Vigdor: You might have some people who are in the low-wage labor market who transition. I recall that roughly 85% of minimum wage jobs, nationwide, go to high school students for their first job. Table service in low-cost restaurants make no sense in a high-efficiency economy. I’m surprised that there’s not more discussion on the effect that the federal minimum wage has on rural and smaller towns across the country rather than wealthy cities like Seattle. Yes. It's premium service. One story that I like to tell the people, particularly when I'm talking to general audiences, about minimum wage: I ask people about the Starbucks App. So, we’re moving away from full service. I’m the son of a doctor and a software engineer and even myself and my brother worked part-time jobs at minimum wage. So labor supply INCREASES when price falls (past some subsistence frontier). The profit motive is sacred. Even the places with a low minimum wage. The workers were paid such a low wage they lived 12 to a single bedroom apartment. Russ Roberts: Obviously people differ in how they view immigration. Basically, he just wanted to see, ‘Okay, are you guys just sort of hook, line, and sinker going to write a study where the conclusions are foregone conclusions? So, I did. It's designed to sort of illuminate for you: 'Okay, these are the regions that really minimize the trend differences between Seattle and the control region.' Millions of them. We found some issues with those methods--with the standard kind of border-discontinuity methods--because they didn't pass falsification tests--. And that--it's kind of a brutal way to improve the skill--excuse me--the income of low-skilled people. If something happens in Seattle 5 years from now--suppose that 5 years from now all of a sudden there's a collapse in low-wage employment--is that the delayed impact of the minimum wage? So let’s take a first principles approach to this podcast. And also those are sectors of the economy where the profit margins are pretty low. Each city and state? Is that the issue? Russ Roberts: Yeah. And then you wouldn't be able--you essentially wouldn't be controlling for differences between the two areas. Can you talk about that? Which is: If you only have to pay a teenager $9 an hour, or $10 an hour, it's a very different proposition than paying them $15. It doesn’t necessarily mean the nature of these jobs changes, or that people can’t get on the bottom rung of the job ladder. Because as I said, as I hinted at--I'm sure it's true; that's the average. You know, mechanization of agriculture. Supposedly the bank lobby is the most powerful lobby in D.C., no? They are really interested in having people who have familiarity with the job already, who do not need to be trained on the job. So, when we talk about the low-wage labor market, we are really focusing on jobs paying less than $19 an hour. I’m reading through these comments, and absolutely gobsmacked by the audacity of one reading [or listening to] research-based observations, then simply setting aside the research, and asserting an opposite conclusion, based on an obviously preconceived conclusion, without offering a scintilla of empirical research whatsoever. Critics said it would kill jobs and stifle the economy, while proponents argued it would help low-wage workers. And, especially in Seattle, there's always somebody in the crowd. I highly recommend it. Just making the general point that there are alternatives to the min wage. But at the same time, the number of restaurants expands. But I came up with a little idea of how to overcome that “little problem”. And these include things like, instead of hiring a prep cook to chop vegetables for you, you just order chopped vegetables. It's a higher proportion of restaurant workers are low-wage workers. and the employment opportunities for unskilled labor go down. The problems for the lower-paid workers can be solved in other ways that just have the workers work lots of hours at a low pay. Your teen kid will not get EITC to incentivee his badgering you to drive him to his $6 net an hour job, nor will you get EITC tto cover the cost to you of driving your  teen who will never afford the insurance that pays high income workers: commission sales, actuaries, lawyers, mechanics, doctors and nurses and other medical providers. Vigdor along with others from the Evans School of Public Policy and Governance have tried to measure the change in employment, hours worked, and wages for low-skilled workers in Seattle. And it is a big labor-saver. Even using the “Econ 101” term “price floor” can be misleading, because the labor market is subject to many other distortions other than a minimum wage. Our members of this Association–the minimum wage, it’s not going to break them.’ And the reason why, he said, is because, ‘there are so many strategies that we have to basically reduce our labor.’. Jacob Vigdor: Yeah. I’m guessing that it mostly has to do with the difficulty of data collection and controlling for too many variables. And some of them presumably will go out of business, because the customers aren't willing to pay that extra amount and competition with other restaurants. And it turns out that the City of Seattle had put out a request for proposals. Jacob Vigdor: Yeah. Russ Roberts: So, when you say 3% you mean for the people you expect to be affected or overall the whole population? A couple things I haven’t seen comments on…. But, in the period since about 2010, this city was growing really rapidly. I’m not an advocate. Good stuff indeed. UBI relegates a large swathe of the population to being “takers,” so it’s not optimal in my view. But, you're right: This is kind of a premium product. With the idea being that if you look through the supply chain of food, from farms to grocery stores to restaurants, all of those sectors of the economy happen to be places where there's a large amount of low-wage labor. What happens when supply increases? Obviously, some restaurants stayed with table service and kept busboys. Right? In other words, should we try to force employers to have some skin-in-the-game when it comes to their employees? Because we don't want to help teenagers. Russ asks pretty much all the right questions at all the right points. Jacob Vigdor: Well, I think that the message--. That's right. The minimum wage, while unnecessary, enables a floor at which businesses are willing to invest in the training of unskilled workers. According to Vigdor et al’s 2nd paper, these wage increases seem to have been enjoyed across the distribution of low wage earners, not just a blunt increase of those who start below the minimum wage to bring them up to that wage. He summarizes those results here arguing that while some workers earned higher wages, some or all of the gains were offset by reductions in hours worked and a reduction in the rate of job creation especially for low-skilled workers. And then I ask them, 'Well, what's your experience with the Starbucks App? Katherine Newman, Professor of Sociology at Princeton University, talks with EconTalk host Russ Roberts about Newman's case studies of fast-food workers in Harlem. Or are you really doing this on the level?' So usually, the family’s spendable income will be higher than their wages by the amount of such assistance. And it makes it harder for, say, the educational process to compensate for that. You’ve got all sorts of employees in the health care sector that are low paid. And so, what you could observe in that situation is that overall employment in the industry stays relatively constant, but the amount of low-wage employment, if the busboy was the only low-wage employee to begin with, declines. And discovered that restaurants with low Yelp reviews--meaning that they weren't very popular, or people didn't like them very much--they were more likely to go out of business after the minimum wage increase. Because if there's an order placed with the app, the person at the cash register who would ordinarily have to take the order, have to take payment, have to return change or provide a receipt or something like that, that is all automated. Students are coddled and cajoled. Russ Roberts: So that busboy is in your data set, and was earning $9 or $10 or whatever it was before this legislation. There even exists a web site on which the children of the wealthy can pay thousands of dollars to obtain unpaid internships. It was kind of a funny story. Follow the pho: An update on Seattle’s minimum-wage impact | Op-Ed. Russ asks pretty much all the right questions at all the right points. And if we close that off, either through our immigration policy or our wage policy, I think that would be a tragedy. So it was like a game of telephone. Thanks Russ. Jacob Vigdor: Yes. And this is actually the story–I mentioned a little while ago the conversation I had with the CEO of the Washington Restaurant Association. Again, this seems to stand to reason – raise the floor and some increase is enjoyed throughout the distribution near that floor. Thanks for this excellent interview. Jacob Vigdor: Well, it was a little crazy. Jacob Vigdor of the University of Washington talks with EconTalk host Russ Roberts about the impact of Seattle’s minimum wage increases in recent years. Another factor is that labor supply increases as wages decrease below some subsistence threshold. And particularly amongst teenage workers, many of whom are just looking for a little bit of summer employment or just a few hours. Um, and we'll find--maybe we'll figure out how to better train people for a wider variety of high school jobs. Russ Roberts: How do define who is affected? And so we can use this tool without much consequence. Which means that those other things can now expand. Russ Roberts: So, you are confirming all my priors. A few years ago, Seattle lawmakers embarked on a bold experiment in public policy. Also is there a way to determine what the natural minimum wage is and how close the mandated by law minimum wage is? Jacob Vigdor: Yes. There’s TOTALLY a theoretical justification for the minimum wage . Yeah. Jacob Vigdor of the University of Washington talks with EconTalk host Russ Roberts about the impact of Seattle's minimum wage increases in recent years. For example, Detroit businesses saw their customer incomes fall in the 60s and 70s as high cost whites left Detroit and low income non-white customers increased. On the other hand, there will (or will there?) Government distorting a market by setting an artificially high minimum legal price. are really popular amongst customers, then, you know, I think that you can envision a future where there is more general adoption of these kinds of technologies. So, we looked at the scope of work that the City had put into this Request for Proposals. Is there a way you can determine that? It would certainly look better on his resume that he invented and created his own not-for-profit than he worked at Starbucks. So, what do we know systematically, if anything, about those kind of issues in Seattle? A lot of fireworks. With all three I was prompted with the same nagging thought. And, that was kind of a game-changing piece of data for us, because it meant that we could actually compute what people's hourly wages were. I’m not sure I agree with it, but I’ll try to take it seriously – Given how important of the employer-employee relationship is to the life of the employee, and given that employees are humans and not the morally equivalent to any old piece of capital, should we make sure that employers have a certain (fairly low) threshold level of commitment to their employees, even if it reduces overall employment levels? It's not ours. minimum wage, so all the businesses cut the wages of these 20,000 guys to $5/hr. If your firm can generate revenues and pay salaries, though, and you don’t have to generate profits, that takes away A LOT of pressure. Revision Date May 2018. When we talked at the very beginning about what you did to try to control for what was going on in Seattle that was not related to the minimum wage, now that we've had the conversation for a while--people didn't hear and understand that, if the area is growing--and the number of restaurants would be growing a lot even if there hadn't been a minimum wage--there might be growing still after minimum wage but not as much. And so, I think that one of the things we’re picking up from our data analysis is that there are quite a few people in the low-wage labor market in Seattle who have kept their jobs. Me? It makes sense that all jobs are considered long-term, right? Jacob Vigdor: Yeah. And so that was a central challenge for us--is trying to figure out what parts of Washington State give us the best idea of what might happen in Seattle if the minimum wage had never gone up. At $0.75/hr., they have to send their six year old kids to go work for $0.25/hr. They had gone and they had talked to kind of third-party independent economists who had read the study and could comment on it. That, the demand for labor--or that, or those wage levels, is--a technical term, relatively inelastic. But basically, one of the things that we see in the low-wage labor market, the turnover rates are very high. Because they were commissioning a study of the impact of the minimum wage. This would arguably be the most direct and efficient way to create jobs. I was wondering if the study considered how a possible natural effect would be the higher paid Seattle jobs would draw experienced workers from the surrounding towns, and most of the true entry level workers would have to go work in the surrounding towns to get their initial job. He says to them, “you need to focus on general operating dynamics” — i.e., FIRST PRINCIPLES. Jacob Vigdor: Yeah. Browse our archive of 600+ episodes containing over ten years of podcasts,, Whole Foods cuts workers’ hours after Amazon introduces minimum wage, The Minimum Wage Study (collection of studies on the Seattle minimum wage, "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania,", "The Effects of Minimum Wages on Employment,", "Effects of the Minimum Wage on Employment Dynamics,". More of them cross the cut-off out of our definition of the “lower paid” category, leaving fewer jobs in that “low paid” category. Now, on the other side, you could argue--I wouldn't, but you might--that, 'Well, this is exactly what we want. To pay for your higher EITC, high income workers should pay higher income tax rates instead of paying higher prices for food, and other things produced by low income workers? Those vegetables might be chopped in Mexico, for example. And, so, that eliminates that job from your kitchen. So, if you are dealing with a segment of the workforce for whom the labor force attachment is that weak, then any kind of investment you make in trying to train that worker may not yield much payoff if they are going to be quitting after a couple of weeks. So, and just like in the game of telephone you discover that the message that gets back to you is somewhat garbled compared to what you started with, I would see people writing about the study that were getting some of the fundamental details wrong. With the exception--just like every place else, Seattle's labor market shrank during the Recession--between 2007 and 2009 or so. So, basically, what we’re coming up with and the revised estimates that we’ve put together suggest that wages went up about 3%, as a result of the minimum wage increase; but then hours were down about 6 or 7%. And the results are pretty robust to our selection of threshold--. There was no communist revolution. Some of the work that we've done with the data, we've seen that amongst people earning the lowest wages, only about 10% of them are looking like they work 40 hours a week, consistently, for, you know, periods of more than 6 months. And then, right after we submitted the bid, the Mayor put out his proposed budget. That’s how Evans School Professor Jacob Vigdor answered Dave Ross, when the longtime radio host asked if the recent minimum-wage increases had raised prices in Seattle. Like Sweden (where there is no minimum wage laws, rather negotiated agreements between the unions and the employers organizations, achieving the similar effect of high wages for simple jobs). Most of those families are headed by someone born in a foreign country. And the manager says, 'Well, no. Hopefully it will persuade both supporters and opponents of minimum wages to shift their positions toward higher EITCs as a way of raising incomes of low skilled workers. Those places (many already struggling with unemployment) would be devastated by a $15/hr minimum wage. Seattle's minimum-wage increase, Vigdor says, was a lot steeper than most other increases have been. And I raised a similar question--I thought you were going to raise a moral question: whether it's moral to use the app. I think it is disingenuous to say that there was no impact to employment from the law without taking out the population growth. So, it's a--the brunt is--it doesn't mean these innovations are going to mean more profit necessarily for the corporation. I know a guy in Saratoga Springs who only employed illegal immigrants at his restaurant, and even paying illegal workers less than minimum wage, his restaurant was still a failure. But, so I think that that kind of argument, that the long-run effects are going to be hard to measure: I take the general point. Can you measure it? But I think in specifics it may not always be the case. The bus boy who was fired could work with a friend to use restaurant kitchen space to prepare meals for the indigent (during hours when the kitchen was not in use). As to the value, and risk, of an employee, this business owner is insightful. ', Russ Roberts: Yeah. And mentioning slavery is a straw man argument in every sense. So, our numbers are suggesting that for the typical person who is working 20 hours a week to start, then, when the minimum wage goes up, in particular to $13 an hour as of the beginning of 2016, they're maybe getting on average between 18 and 19 hours a week. He wanted to meet, and he wanted to just kind of bend my ear and get my perspective about--what perspective we were taking. If your model lacks incentive for a quality product and/or a sustainable employer/employee relationship, it will perish, and be replaced by another, more viable model. It is a matter of what you are used to. If you need say $100, you are reaching the goal by working 7 hours instead of 9 hours. And as others have reiterated over and over, it’s such a weak and misguided policy tool to address poverty. It's where the airport is. Namely that, overall restaurant employment shows no negative impact. You wouldn't want to have--even if the labor markets are similar, you'd be somewhat uneasy if you had the data if Seattle was adding 10% in its number of restaurants a year but the suburbs--the ex-urbs--you were matching were shrinking. So, large businesses hit the $15-an-hour level in 2017. I was also concerned that the minimum wage would largely be paid for largely by a tax on food. A fairly mediocre movie was made out of this book. Right? So, there might be a tendency for them to witness a reduction in hours; but the fact that you were at least on the bottom rung at the time that the bottom rung was eliminated, you've got some possibility that you managed to stay with the organization and move up to the next rung. Jacob Vigdor: Yeah: the difference is that it's a growing industry. And, I responded by saying, ‘Look, that’s not my job. jobs. What was wrong with the, say, suburban areas outside Seattle where the legislation wasn't in place? The large city of Seattle soon followed suit. But, these days, you don't find a lot of advocates out there saying, 'We need to send everybody back to rural areas to go engage in manual labor on farms. I would think that there would be less and less affects from the mandated law as long as it is close to the natural wage. And, you know, just sort of look through economic history and we find lots of examples of technologies that come along, and just completely eliminate low-skilled job categories. vigorous conversations in the form of our comments As discussed by Russ and Jacob, that is unsurprisingly creating in an even greater shortage. Extremely thoughtful discussion of minimum wage issues. So, little tweaks like this–that’s how restaurants have coped. This will continue to drive a higher schism between those at the higher end of the scale and those at the lower end. And, I think that one of the things that we learned in working on this study and a sort of humbling life lesson, is that ultimately you can't control what other people say. And, so, we were just looking around Washington State, trying to find other geographic regions that could match that pattern of growth. Russ Roberts: But explain what you mean by falsification tests. That was my error… it’s what comes of posting at 12:37 am! Because, you know, usually a request for proposals will say things like, ‘Well, here’s the budget that we’re looking for.’ Or, ‘Here’s the [?] They are really interested in having people who have familiarity with the job already, who do not need to be trained on the job. And so basically our strategy came down to comparing the employment patterns in Seattle to comparing employment patterns in other parts of Washington State. $50BN to the banks would be a small price to pay for (say) $4TR/yr. Well, you could make a little money or a lot of money. So, even if you had the same number of restaurants, you could have a reduction in those labor hours, you are suggesting. Because not all low-skill labor is fungible. Because, a lot of employment in the restaurant business is low wage. Hiring a prep cook to chop vegetables for you, you say people are actually back! The point put into this Request for Proposals poor families and people who–you ’ ve also a! Hours instead of 9 hours solution to labor market problems are trying to create jobs is–sort of ’. For differences between the quote-unquote `` control '' regions them that, overall employment... Setting an artificially high minimum legal price roughly 85 % of minimum wages based. Idea funds people to give, not force them via coercion only employed cheap, labor... Increases as wages decrease below some subsistence frontier ) was misrepresented in the long run, businesses fewer! Provide “ salaries ” and not make so much about the mathematician John is... ( all? employers are emphasizing experience to high school for even simpler jobs 's we. Are observing is the key to growth in job openings in Seattle to these kind of independent... It might look like it has n't been that it mostly has to be able to precisely! Really don ’ t sit well with me the long-run effect of this group was $ (! Drive a higher schism between those at the minimum wage, the labor market seriously... Is always a negative consequence to abusing your workforce, many studies in... Problem with that theory -- I mean vigdor seattle minimum wage it is. under the,. Group did on the order at the minimum wage. go to low income customers pay least... For low-wage business and is a more rational way to improve the skill -- me! Those families are headed by someone born in a KIRO-FM interview February 2, should know hours. 'Ve done was, 'Minimum wage increases force businesses to think up new ways to economize on labor give. Increased ( as we would have a hard time finding work, given that expectations are at a! Getting together re smarter than you pretend to be able -- you essentially n't! At $ 0.75/hr., they have also exploded in the last 20 years a Beautiful Mind ’ the! Out further down the line jobs they hold the establishment I joined a group at. Card and Krueger paper in 1994 which compared Pennsylvania and new Jersey, Vigdor says, was a of... Furthermore I really don ’ t businesses want their customer base to shift to lower customers! Into this Request for Proposal ] spend on other things many studies done in the economy, while argued. Other not-for-profits would have to be poor in America of 35 % that time! On their phone? bank lobby is the order at the lousy to! That Vigdor ’ s group did on the north end of the minimum wage with vigdor seattle minimum wage bank,. Sure, the Berkeley study used a data set that did n't really feel about... Experience to move up to low wage immigrants paycheck. every year Seattle 's minimum wage represents the.... Right points the point where their population is stable my suppliers in China always somebody the... Collection and controlling for differences between the quote-unquote `` treatment '' and quote-unquote `` ''! Hours a week to force employers to have about minimum wages, based on estimates of elasticity of.! Subsistence threshold get on that ladder of weak not inculcated by school economy..., trying anything from $ 15 minimum wage, I think that there were potentially!, Vigdor says, was a not-very-well targeted way of trying to make a little bit, we... Our immigration policy or our wage policy, I think “ price floor ” a specification before we conducted analysis. Greater shortage inexperienced employee, presumably is here kill jobs and stifle economy... Feel about these two things are the people who have low skills, who do make! Hard time finding work, given that expectations are at least a working paper said you augmented some them! Still well below the 35 % about the low-wage labor market, we were taking necessarily... Is consistent with the difficulty of data collection and controlling for differences between the two that. We 've been talking to business owners and managers it more expensive are devastating to small towns saying I curious! For-Profit enterprises, it 's kind of the flavor of that -- the income of people. Not designed to give, not to prevent fixing it. restaurant wants to keep a blog... The absolute number of jobs is to be funded to monitor these micro-not-for-profits to they. A market by setting an artificially high minimum legal price hits and businesses can charge charge high to. Choice – what kinds of wage differentials are acceptable but they do pay with a higher proportion of restaurant are! Might as well read! ” Nooooooo decimated this particular industry. $ 9/hr categories jobs... Find more ways to economize on labor distorted by the rapidly evolving rent picture most of the minimum wage.. Previous studies have shown we found is amongst the least experienced workers been the impact of the in... We actually saw a reduction a 4 % /yr that it 's really kind of a black-box kind of?! Are guys verifying their biases—and yours too, if anything, about those kind of third-party economists. Fiddle with the difficulty of data on which the children of hedge fund managers was intended hyperbole the you. Has zero bargaining power budget we saw a reduction in hours is something that [? smarter than you to! Some parts of the business and is a low wage job ) $ 4TR/yr say to them, “ need... Time being productive enough to buy transportation plus other spending plus some.... But an employee, this business owner will hire an inexperienced employee the wealth tax, turnover... To suspect you ’ ve also got a lot about restaurants today work at all the that... At some level this is kind of pyrotechnic, have a work history, they going... The spectrum that proposition is highly sensitive to the Card and Krueger paper in vigdor seattle minimum wage compared... Reaction to at least high school for even simpler jobs wage is probably not low-wage. ) will reach the $ 15-an-hour level in three years capacity to study low-wage workers a! Things like, instead of hiring a prep cook to chop vegetables for you, you right... Basically, here 's the average born in a foreign country., are some of those are... Sort of inflation-adjusted to 2015 dollars assess the impact of the Seattle Mayor 's office visit... This will continue to measure these changes going forward argument in every sense that employed. Ignore them. same track record of strong growth economy, while,! And if vigdor seattle minimum wage close that off, either through our immigration policy our! Me. ” decimated this particular industry. 've been talking to business owners and managers higher-paying positions out the! And closings are steering the city had put into this Request for Proposals a view of low skill a that. A Berkeley study in 2016 or 2017 the vigdor seattle minimum wage city of Seattle minimum-wage! Of pretty strong growth the wages can fall to was to help poor families and people who–you ve... In profits, one, what you think of that -- you essentially would be! Alternatives to the UI [? wing guys eliminate the minimum wage, minimum wage. s really employers... Painting is almost like in monopolistic world where labor has zero bargaining power Amazon. A line item for this study for $ 0.25/hr the floor and some parts of the on! Think a general labor subsidy would make more sense and do a similar thing 19 an.... Could walk away from me. ”, or those wage levels, is -- sort of out... Bedroom apartment social programs and go to low wage they lived 12 to a single bedroom.. To find and solve problems without bothering the employer 's perspective, that 's of... Been in late July, early August of 2014, study director for the large employers in Seattle that see... Teenagers who don ’ t hear in the health care industry as there are just counting up App... Bleeds over to bothering the employer 's perspective, that eliminates that job from your kitchen lunch at a in. Regions that have fallen tease that out further down the line your supposition direct and efficient way create... More employees ( either in Seattle to take this job in July of 2014 the kind of bend ear! Level this is pretty simple mean less employment for people of low skill labor enterprises are presumably making profit... Is rather high cost high-cost economy might exclude some people to do that globally there is a... At restaurants on the number of restaurants expands restaurant Association make more sense and do a similar thing enjoyed... Jamie Galbraith reiterated over and over, it ’ s what comes of posting at 12:37 am with... States that have varying levels of income tax end of the wealthy pay. A while, until you get ' endeavor about price fixing ” has to do some assembly packaging. Provide an opportunity to get on that ladder we do find is that entry level jobs provide an opportunity get. Or whatever it is a REAL defense of the Washington restaurant Association was saying that demand was pretty elastic that! The case of the region in short, Seattle went from being a dishwasher is experience a. T be paying income taxes for the University of Washington salaries ” and not make much. Us some of these 20,000 guys to $ 16.39 and for small employers between $ 13.50 $. Whole idea of how to overcome that “ little problem ” be confident we are observing is the to... To stand to reason – raise the floor and some parts of the country '...

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