Minimum Wage Ordinance Research Articles

Early results of a natural experiment evaluating the effects of a local minimum wage policy on the diet-related health of low-wage workers, 2018-2020.

The current study presents results of a midpoint analysis of an ongoing natural experiment evaluating the diet-related effects of the Minneapolis Minimum Wage Ordinance, which incrementally increases the minimum wage to $15/h. A difference-in-difference (DiD) analysis of measures collected among low-wage workers in two U.S. cities (one city with a wage increase policy and one comparison city). Measures included employment-related variables (hourly wage, hours worked and non-employment assessed by survey questions with wages verified by paystubs), BMI measured by study scales and stadiometers and diet-related mediators (food insecurity, Supplemental Nutrition Assistance Program (SNAP) participation and daily servings of fruits and vegetables, whole-grain rich foods and foods high in added sugars measured by survey questions). Minneapolis, Minnesota and Raleigh, North Carolina. A cohort of 580 low-wage workers (268 in Minneapolis and 312 in Raleigh) who completed three annual study visits between 2018 and 2020. In DiD models adjusted for time-varying and non-time-varying confounders, there were no statistically significant differences in variables of interest in Minneapolis compared with Raleigh. Trends across both cities were evident, showing a steady increase in hourly wage, stable BMI, an overall decrease in food insecurity and non-linear trends in employment, hours worked, SNAP participation and dietary outcomes. There was no evidence of a beneficial or adverse effect of the Minimum Wage Ordinance on health-related variables during a period of economic and social change. The COVID-19 pandemic and other contextual factors likely contributed to the observed trends in both cities.

Examining Changes in Food Security, Perceived Stress, and Dietary Intake in a Cohort of Low-Wage Workers Experiencing an Increase in Hourly Wage.

To determine whether an increase in hourly wages was associated with changes in food security and perceived stress among low-wage workers. We also determined whether changes in food security and stress were associated with changes in diet. Wages is a prospective cohort study following 974 low-wage workers in Minneapolis, MN, where an ordinance is incrementally increasing minimum wage to US$15/hr from 2018 to 2022, and a comparison community with no minimum wage ordinance (Raleigh, NC). Interaction models were estimated using generalized estimating equations. Analyses used two waves of data (2018 [baseline], 2019) and included 219 and 321 low-wage workers in Minneapolis and Raleigh (respectively). Average hourly wages increased from US$9.77 (SD US$1.69) to US$11.67 (SD US$4.02). Changes in wages were not associated with changes in food security (odds ratio = 1.05, 95% confidence interval [CI] [0.89, 1.23], p = .57) or stress (β = -0.01, 95% CI [-0.04, 0.03], p = .70) after 1 year of policy implementation. Changes in food security were not associated with changes in diet. However, we found significant changes in the frequency of fruit and vegetable intake across time by levels of stress, with decreased intake from Wave 1 to 2 at low levels of stress, and increased intake at high levels of stress (incidence rate ratio = 1.17, 95% CI [1.05, 1.31], p = .01). Changes in wages were not associated with changes in food security or stress in a sample of low-wage workers. Future research should examine whether full implementation of a minimum wage increase is associated with changes in these outcomes.

The effects of target vulnerabilities on social movement outcomes: Wage campaigns in U.S. cities

How do target vulnerabilities affect social movement outcomes? Walsh (1986) and Jasper and Poulsen (1993) conceptualize target vulnerabilities as characteristics or practices of organizations that are inconsistent with relevant normative expectations (laws, professional codes, widely-held public expectations, etc.). Organizations' claims to legitimacy, and the access to resources that legitimacy bestows, are based on the presumption of adherence to those normative expectations, so credible threats to that presumption cannot be ignored. We draw on political process theories and the logic of policy change to analyze how target vulnerabilities affect movement outcomes in campaigns for living wages (1994–2003) and for increased minimum wages (2012–2017). For living wage campaigns, we model the effects of political elites’ vulnerability to the threat of popular delegitimation and vulnerability to non-participation by municipal workers on the likelihood of city councils 1) holding a vote (access outcome) and 2) adopting a living wage ordinance (advantages outcome). Using sequential regression analyses of these outcomes in 596 U.S. cities, we find that the effects of target vulnerabilities vary across living wage ordinance outcomes: delegitimation vulnerabilities affect the likelihood of access outcomes, whereas adoption advantages are more likely in the presence of non-participation vulnerabilities. We test the generalizability of our model and measures in an analysis of local minimum wage ordinance campaigns. We show that contentious politics at the local level differs from the national-level in ways that render city political elites potentially vulnerable to movement threats of delegitimation and non-participation.

How Do Employers Belonging to Marginalized Communities Respond to Minimum Wage Increases? The Case of Immigrant-Owned Businesses in Seattle.

Minimum wage opponents often argue that businesses owned by marginalized communities, which include woman-owned, Black-owned, and immigrant-owned businesses, are exceptionally vulnerable to minimum wage increases. Little research has investigated this claim. Using a unique survey of Seattle businesses that includes owners' nativity status and was administered while the city began to phase in its $15 minimum wage ordinance, the authors find that immigrant-owned businesses respond to the higher minimum wage in ways that largely conform to the responses of other businesses. Nevertheless, immigrant-owned franchises are less likely than other franchises to fire employees, reduce employees' hours, or lower the wages of employees earning more than $15 per hour. Evidence suggests that immigrant franchisees have a lower likelihood of passing the increased labor costs onto employees because they use fewer employees and rely more heavily on family labor compared to other franchisees. The authors' findings suggest that firms owned by marginalized and nonmarginalized groups respond to municipal-level minimum wage increases in comparable ways. Nevertheless, marginalized status may matter more in certain sectors of the economy than in others.

Bus ridership and the minimum wage: Evidence from bus stops near fast-food restaurants

ABSTRACT This paper examines the impact of Minneapolis’ local minimum wage ordinance on bus ridership. We use a difference-in-differences (DD) strategy to compare changes in ridership at bus stops in Minneapolis near fast-food restaurants to similarly situated stops around the metro area where the minimum wage was unchanged. We find that the minimum wage increase caused bus ridership to increase by 1,828 rides per day or 3.5% of post-treatment daily boardings in Minneapolis. We show that the treatment effect is highly concentrated at bus stops near fast-food restaurants. An increase in the intensive margin of labour, or weekly hours, is consistent with our results and available labour market indicators.

Seattle's local minimum wage and earnings inequality

AbstractDuring the past 6 years, a wave of local minimum wage laws passed in the United States with policymakers and advocates framing the policy as a means of reducing income inequality. This report evaluates whether one of the first of these efforts, Seattle's $15 minimum wage ordinance, lowered inequality of earnings of workers in the city. I find that inequality among workers who earned less than the city's median wage was modestly reduced, yet overall earnings inequality substantially increased during the period in which the ordinance was phased in, likely for reasons unrelated to the minimum wage law.

Association between hourly wages and dietary intake after the first phase of implementation of the Minneapolis minimum wage ordinance.

In 2018, Minneapolis began phased implementation of an ordinance to increase the local minimum wage to $15/h. We sought to determine whether the first phase of implementation was associated with changes in frequency of consumption of fruits and vegetables (F&V), whole-grain-rich foods, and foods high in added sugars among low-wage workers. Natural experiment. The Wages Study is a prospective cohort study of 974 low-wage workers followed throughout the phased implementation of the ordinance (2018-2022). We used difference-in-difference analysis to compare outcomes among workers in Minneapolis, Minnesota, to those in a comparison city (Raleigh, North Carolina). We assessed wages using participants' pay stubs and dietary intake using the National Cancer Institute Dietary Screener Questionnaire. Analyses use the first two waves of Wages data (2018 (baseline), 2019) and includes 267 and 336 low-wage workers in Minneapolis and Raleigh, respectively. After the first phase of implementation, wages increased in both cities, but the increase was $0·84 greater in Minneapolis (P = 0·02). However, the first phase of the policy's implementation was not associated with changes in daily frequency of consumption of F&V (IRR = 1·03, 95 % CI: 0·86, 1·24, P = 0·73), whole-grain-rich foods (IRR = 1·23, 95 % CI: 0·89, 1·70, P = 0·20), or foods high in added sugars (IRR = 1·13, 95 % CI: 0·86, 1·47, P = 0·38) among workers in Minneapolis compared to Raleigh. The first phase of implementation of the Minneapolis minimum wage policy was associated with increased wages, but not with changes in dietary intake. Future research should examine whether full implementation is associated dietary changes.

A Difference-in-Difference Study Evaluating the Effect of Minimum Wage Policy on Body Mass Index and Related Health Behaviors

Minimum wage laws are a promising policy lever to promote health equity, but few rigorous evaluations have tested whether and how minimum wage policy affects health outcomes. This paper describes an ongoing difference-in-difference study evaluating the health effects of the 2017 Minneapolis Minimum Wage Ordinance, which incrementally increases the minimum wage to $15/hr. We present: (1) the conceptual model guiding the study including mediating mechanisms, (2) the study design, and (3) baseline findings from the study, and (4) the analytic plan for the remainder of the study. This prospective study follows a cohort of 974 low-wage workers over four years to compare outcomes among low-wage workers in Minneapolis, Minnesota, and those in a comparison city (Raleigh, North Carolina). Measures include height/weight, employment paystubs, two weeks of food purchase receipts, and a survey capturing data on participant demographics, health behaviors, and household finances. Baseline findings offer a profile of individuals likely to be affected by minimum wage laws. While the study is ongoing, the movement to increase local and state minimum wage is currently high on the policy agenda; evidence is needed to determine what role, if any, such policies play in improving the health of those affected.

Association between hourly wages and dietary intake after the first phase of implementation of the Minneapolis minimum wage ordinance

Association between hourly wages and dietary intake after the first phase of implementation of the Minneapolis minimum wage ordinance

The Initial Nonprofit Exposure and Response to Seattle's Minimum Wage Ordinance.

Nearly 40 local governments adopted minimum wage rates higher than the federal minimum in the last decade. Research on such laws focuses on employment and price adjustments of for-profit firms. Higher minimum wage rates, however, may pose unique challenges to community-based nonprofit organizations, many of which serve vulnerable communities and have limited ability to modify business practices. We use survey and in-depth interview data with more than 125 nonprofit executives to explore how nonprofit organizations were exposed to, understood, and responded to the initial phase-in of Seattle's $15 minimum wage ordinance. Although most nonprofits with low-wage workers do not report substantial programmatic changes in response to the minimum wage, we do find evidence nonprofits are pursuing several avenues to raise revenue to cover higher anticipated labor costs. Results suggest that the channels of adjustment available to nonprofits have a different character than those available to for-profit firms.

The Washington State Merged Longitudinal Administrative Database

This paper describes a uniquely comprehensive database constructed from merged state administrative data. State Unemployment Insurance (UI) systems provide an important source of data for understanding employment effects of policy interventions but have also lack several key types of information: personal demographics, non-earnings income, and household associations. With UI data, researchers can show overall earnings or employment trends or policy impacts, but cannot distinguish whether these trends or impacts differ by race or gender, how they affect families and children, or whether total income or other measure of well-being change. This paper describes a uniquely comprehensive new administrative dataset, the Washington Merged Longitudinal Administrative Database (WMLAD), created by University of Washington researchers to examine distributional and household economic effects of the Seattle $15 minimum wage ordinance, an intervention that more than doubled the federal minimum wage. 
 WMLAD augments UI data with state administrative voter, licensing, social service, income transfer, and vital statistics records. The union set of all individuals who appear in any of these agency datasets will provide a near-census of state residents and will augment UI records with information on age, sex, race/ethnicity, public assistance receipt, and household membership. In this paper, we describe 1.) our relationship with the Washington State Department of Social and Health Services that permits this data access and allows construction of this dataset using restricted personal identifiers; 2.) the merging and construction process, including imputing race and ethnicity and constructing quasi-households from address co-location; and 3.) planned benchmarking and analysis work.

Employer Responses to a City-Level Minimum Wage Mandate: Early Evidence from Seattle

A growing number of cities and counties have recently raised their minimum wages. How employers respond to these mandates provides insight into the impact such policies might have on workers and local labor market. Drawing on two survey waves tracking initial responses to Seattle’s $15 Minimum Wage Ordinance by 439 employers with low-wage workers, we show how employers adjusted to higher wages. Most commonly, firms raised prices (56% reported this); smaller percentages reduced employee headcount or hours, limited internal wage progression, or took other measures. Single-site Seattle employers responded similarly to those with multiple sites. Food and accommodation sector employers were more likely to raise prices than firms in other sectors. Relative to other ownership structures, franchises disproportionately reported reducing their workforces. Very few employers reported withdrawing from Seattle. Overall, initial employer responses to this city-level minimum wage law align with predictions from the literature, findings that highlight trade-offs that policy makers must consider in future local wage regulation.

Seattle's minimum wage ordinance did not affect supermarket food prices by food processing category.

To examine the impacts of Seattle's minimum wage ordinance on food prices by food processing category. Supermarket food prices were collected for 106 items using a University of Washington Center for Public Health Nutrition market basket at affected and unaffected supermarket chain stores at three times: March 2015 (1-month pre-policy enactment), May 2015 (1-month post-policy enactment) and May 2016 (1-year post-policy enactment). Food items were categorized into four food processing groups, from minimally to ultra-processed. Data were analysed across time using a multilevel, linear difference-in-differences model at the store and price level stratified by level of food processing. Six large supermarket chain stores located in Seattle ('intervention') affected by the policy and six same-chain but unaffected stores in King County ('control'), Washington, USA. One hundred and six food and beverage items. The largest change in average price by food item was +$US 0·53 for 'processed foods' in King County between 1-month post-policy and 1-year post-policy enactment (P < 0·01). The smallest change was $US 0·00 for 'unprocessed or minimally processed foods' in Seattle between 1-month post-policy and 1-year post-policy enactment (P = 0·94). No significant changes in averaged chain prices were observed across food processing level strata in Seattle v. King County stores at 1-month or 1-year post-policy enactment. Supermarket food prices do not appear to be differentially impacted by Seattle's minimum wage ordinance by level of the food's processing. These results suggest that the early implementation of a city-level minimum wage policy does not alter supermarket food prices by level of food processing.

The Impact of a City-Level Minimum-Wage Policy on Supermarket Food Prices in Seattle-King County.

Background: Many states and localities throughout the U.S. have adopted higher minimum wages. Higher labor costs among low-wage food system workers could result in higher food prices. Methods: Using a market basket of 106 foods, food prices were collected at affected chain supermarket stores in Seattle and same-chain unaffected stores in King County (n = 12 total, six per location). Prices were collected at 1 month pre- (March 2015) and 1-month post-policy enactment (May 2015), then again 1-year post-policy enactment (May 2016). Unpaired t-tests were used to detect price differences by location at fixed time while paired t-tests were used to detect price difference across time with fixed store chain. A multi-level, linear differences-in-differences model, was used to detect the changes in the average market basket item food prices over time across regions, overall and by food group. Results: There were no significant differences in overall market basket or item-level costs at one-month (−$0.01, SE = 0.05, p = 0.884) or one-year post-policy enactment (−$0.02, SE = 0.08, p = 0.772). No significant increases were observed by food group. Conclusions: There is no evidence of change in supermarket food prices by market basket or increase in prices by food group in response to the implementation of Seattle’s minimum wage ordinance.

Implementation of Portland's Minimum Wage Ordinance: Need for a Community Based Organization Approach?

There is a gap between what the city government of Portland Maine perceives and defines as successful minimum wage enforcement and what is actually occurring in workplaces. The city is taking an onerously complaint‐driven approach to enforcement that disregards the potential for a disconnect between violations occurring and violations being reported. Workplaces are fraught with institutional barriers like confusion, intimidation, and misinformation that prevent workers from knowing or exercising their rights. Outreach conducted collaboratively with the Southern Maine Workers Center has shown that these barriers have caused a number of violations of Portland's minimum wage ordinance that are going unreported.

Implementing a Statutory Minimum Wage in Hong Kong: Appreciating International Experiences but Recognizing Local Conditions

The much debated Minimum Wage Ordinance eventually secured passage in the Hong Kong Legislative Council on 17 July 2010 and is to take effect on 1 May 2011. A Minimum Wage Council established under the Ordinance has made recommendations to the Chief Executive on the initial minimum wage level. This paper compares the minimum wage legislation in Hong Kong with that of other Western jurisdictions and seeks to identify what the former can learn from these international experiences in setting a statutory minimum wage. In the final analysis, it is argued that these experiences provide a good platform for implementing a broadly similar regime in the Special Administrative Region, albeit one with ‘Hong Kong characteristics’.

Santa Monica’s Minimum Wage: Assessing the Living Wage Movement’s New Frontier

Local campaigns to create high minimum wages in submetropolitan districts have become a growing part of the living wage movement. In this article, the authors examine the structure and likely effects of an ambitious minimum wage ordinance adopted by the Santa Monica City Council in 2001 but narrowly defeated in a citywide referendum in November 2002. Using a range of data sources, the authors find that the ordinance would have had negative, but surprisingly mixed, effects on local business sectors and highly perverse distributional effects. Apart from their merits as policy, local minimum wage laws raise important, little-studied questions for labor and urban economists.

Recovery by Employee as Beneficiary of Contract Embodying Minimum Wage Ordinance despite Release of Claim

Recovery by Employee as Beneficiary of Contract Embodying Minimum Wage Ordinance despite Release of Claim

The Effect of a Minimum Wage Ordinance upon Special Assessments

The Effect of a Minimum Wage Ordinance upon Special Assessments