Welfare Reform on the Web (August 2007): Minimum wage - overseas

The economic effects of a citywide minimum wage

A. Dube, S. Naidu, and M. Reich

Industrial & Labor Relations Review, vol. 60, 2007, p.522-543

This article presents the findings of a study of the effects of San Francisco's minimum wage, introduced in 2004, on employment in fast-food and table-service restaurants in the city. The minimum wage resulted in significantly better pay and more wage equality, with no discernible loss of jobs. The location of the restaurant (in a tourist area or not) did not affect the results. In the fast-food restaurants, there was a small increase in prices, but more workers stayed in their jobs longer, and those working part-time worked more hours following the introduction of a minimum wage. These changes were not seen in the table-service restaurants.