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https://calmatters.org/commentary/2024/04/fast-food-minimum-wage-research/

CalMatters

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CALmatters is a nonpartisan, nonprofit journalism venture committed to explaining how California’s state Capitol works and why it matters. Environmental regulation, education, health care, criminal justice, economic inequality – the debates on these issues and others have a profound impact on the lives of 38 million Californians and beyond. Yet, mirroring trends across the country, there has been a significant decline in the number of journalists covering the Capitol in Sacramento. This has meant fewer eyes on decision makers, and a public that feels disconnected from its state government. Our team of experienced journalists, with the time and resources to dig deep, is committed to meaningfully informing Californians about the players, politics, and interests that shape the issues that affect their lives. Over the coming months, CALmatters will be working to unwrap key issues, while experimenting with the forms our stories take. To ensure we reach many Californians, we work with media organizations throughout the state that have long, deep relationships with their local audiences.

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Chin Hei Leung, SOPA Images/Sip USA via Reuters
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Today, the minimum wage for California fast food workers will increase to $20 an hour, or 25% above the state’s $16 level. And a first-of-its-kind fast food council will give workers, employers and state government the opportunity to come together and set standards for the industry.

But rather than celebrating, many headlines are predicting mass layoffs, major burger price increases and even the end of fast food as we know it in California.

These headlines reflect an unsophisticated understanding of an outmoded and simplistic theory: In Econ 101, if you increase the price of labor, employers will use less of it or pass along the higher costs to consumers.