New study confirms $20 minimum wage boosts pay for fast food workers without job losses or significant price hikes
A groundbreaking new study from the Center on Wage and Employment Dynamics at UC Berkeley confirms that California’s $20 minimum wage for fast food workers, which took effect in April 2024, has successfully increased worker pay while maintaining stable employment numbers and introducing only modest price increases. The study arrives at a pivotal moment as debates about wage increases continue across the state and nation.
The study’s key findings highlight:
- 18 percent pay increase: Workers saw their hourly wages rise by 18 percent, directly improving their ability to meet the state’s high living costs.
- Stable employment: Despite concerns from restaurant owners, job numbers in the fast food sector remained steady, with no significant layoffs or reductions in hiring.
- Modest price increase: The average price of menu items increased by just 3.7 percent, translating to a mere 15-cent rise on a $4 burger, demonstrating that wage hikes do not lead to unaffordable consumer prices.
According to the study’s co-author, UC Berkeley economics professor Michael Reich, “We find that a carefully implemented sectoral wage floor can raise worker pay without reducing the number of jobs or placing a heavy cost burden on consumers.”
Joe Sanberg, a leading advocate for economic justice and supporter of higher wages, praised the findings: “This study proves what we’ve known all along — when we raise wages, we give people a better chance to succeed without hurting the economy. California’s fast-food workers can now better afford to pay rent and buy groceries, and our economy remains strong. This is the future of wage policy in America.”
As California considers expanding wage policies to other industries, including health care, this report underscores the benefits of sectoral wage-setting in addressing income inequality and improving the livelihoods of millions of workers.
Yes on 32 Campaign, Special to lassennews.com
