New research published by Pepperdine University is attempting to settle the debate over whether boosting the minimum wage for fast-food workers in California to $20 an hour has cost jobs.
The study, released on April 1 to coincide with the one-year anniversary of AB 1228, cites recent data from the California Employment Development Department, showing a “significant” decline of over 23,100 jobs. At the same time, fast-food employment grew by 0.8% nationwide, researchers said.
“This new data should be a wake-up call for policymakers,” said Christopher Thornberg, founding partner at Beacon Economics, a private research group that partnered with Pepperdine’s School of Public Policy. “The employment losses in California’s fast-food industry are now evident, and they confirm what many had warned about: Drastic wage hikes create real economic consequences, especially for entry-level workers.”
The demand for labor is a downward sloping curve.
