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The Fallout of California’s Minimum Wage Folly

A recent study analyzing California's $20 fast-food minimum wage found menu prices rose between 3.3% and 3.6% through December 2024 relative to 17 control metropolitan statistical areas.
Researchers utilized Bureau of Labor Statistics data across 21 metropolitan statistical areas to measure the policy, which was enacted in September 2023 and implemented in April 2024.
Placebo tests on goods not affected by the wage policy, including food at home, showed no differential price increases in California's markets relative to control areas.
Adjunct Senior Fellow Clemens conducted the research with support from the Hoover Institution, incorporating feedback from seminar participants at Sapienza University.
The study notes that boosting worker pay beyond market rates can lead to unintended consequences, including accelerated adoption of labor replacement technologies.

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The Press of Atlantic City

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The fallout of California’s minimum wage folly

Some things in life are difficult. Predicting the negative consequences of exorbitant and rapid minimum wage hikes isn’t one of them.

20 hours ago

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nber.org

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The Effects of California's $20 Fast Food Minimum Wage on Prices

Founded in 1920, the NBER is a private, non-profit, non-partisan organization dedicated to conducting economic research and to disseminating research findings among academics, public policy makers, and business professionals.

2 days ago

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