The Effect of the Minimum Wage on the Fast-Food Industry

@article{Katz1992TheEO,
  title={The Effect of the Minimum Wage on the Fast-Food Industry},
  author={Lawrence F. Katz and Alan B. Krueger},
  journal={Industrial \& Labor Relations Review},
  year={1992},
  volume={46},
  pages={21 - 6}
}
  • L. Katz, A. Krueger
  • Published 1 February 1992
  • Economics
  • Industrial & Labor Relations Review
Using a longitudinal survey of fast-food restaurants in Texas, the authors examine the impact of recent increases in the federal minimum wage on a low-wage labor market. Less than 5% of fast-food restaurants were using the new youth subminimum wage in July/August 1991, even though the vast majority paid a starting wage below the new hourly minimum wage immediately before it became effective. Although some restaurants increased wages beyond the level needed to comply with higher minimum wages in… 
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After nearly a decade without change, legislation that affected the Federal minimum wage in two significant ways took effect on April 1, 1990: (1) the hourly minimum wage was increased from $3.35 to
Do Minimum Wages Reduce Employment? A Case Study of California, 1987–89
In July 1988, California's minimum wage rose from $3.35 to $4.25. During the previous year, 11% of workers in the state and 50% of California teenagers had earned less than the new state minimum.
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The imposition of a national minimum wage standard provides a natural experiment in which the “treatment effect” varies across states depending on the fraction of workers initially earning less than
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Our updated estimates indicate that a 10 percent increase in the federal minimum wage (or the coverage rate) would reduce teenage (16-19) employment by about 1 percent, which is at the lower end of
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While previous time series studies have quite consistently found that the minimum wage reduces teenage employment, the extent of this reduction is much less certain. Moreover, because few previous
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In this paper I explore how changes in the minimum wage affect various occupational wages. I postulate that other wages increase for two reasons: first, firms try to mitigate the deterioration in a
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This paper estimates the difference in compensation between company-owned and franchisee-owned fast food restaurants. The contrast is of interest because contractual arrangements give managers of
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Section 14(b) of the Fair Labor Standards Act permits certain classes of employers to pay full-time students a wage fifteen percent below the minimum wage. This study develops a new data base from
Time-Series Evidence on the
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