| 1) Looking at other industries doesn't invalidate the multi-site critique. 2) The problem here is they narrowly looked at only a small band; they don't even consider jobs which make more than $19/hr. Consider a hypothetical world where when the minimum wage goes from $12/hr to $13/hr, the people who were already making $13 get raised to $14, those making $14 get a bump to $15 and so on with zero effect on the number of people employed, essentially everyone gets a $1 raise. (Note: I am not saying this is our world.) What would the UW study show? It would show a decrease in labor equal to amount of people previously making between $18.01 and $19.00. All these people have been raised above the $19 boundary and so no longer are counted. So even in a situation with no change in the amount of jobs and only positive wage effects, the UW study will show negative employment effects. This is actually where the difference between Berkeley's positive effect and UW's zero effect comes in, from the pdf I linked previously: This pattern of average higher pay and more employment appears also in food services: a decline of about 150 jobs paying under $19 from 2014 to 2016 and a simultaneous increase of about 4,500 jobs in all pay levels at single-site food service establishments. This actually brings me to one of the biggest problems, also from the pdf above: The UW report nonetheless finds an unprecedented impact of wage increases on jobs, ten times higher than the average in 942 published minimum wage and non-minimum wage estimates, and triple that of minimum wage critic David Neumark.7 There is no reason why Seattle's low-paid employers should be so much more sensitive to wage increases than employers elsewhere. Incredible results demand incredible proof and the UW study does not do a good job at all of providing that proof. EDIT: 3) Whether it's number of jobs or hours of work, both are affected by the $19/hr cap so the difference is inconsequential. |
Except that's not the claim. Nobody's saying Seattle is more sensitive, just that there's better data there.
So, we start off with talking about the multi-site critique, I respond to that, and you... switch topics to the $19 cut-off? Is this Calvinball?