skip to main content
skip to newscasts

Friday, December 27, 2024

Public News Service Logo
facebook instagram linkedin reddit youtube twitter
view newscast page
play newscast audioPlay

Trump's top border adviser says he will bring back family detention; Advocates press for expanded access to services in CA; Winter aid available for Indiana rent, bills and basics; NM nonprofit aims to broker affordable housing solutions in Taos; Once homeless, a MO dog is now a children's book star.

view newscast page
play newscast audioPlay

Immigrants' advocates worry about Trump's mass deportation plans. Voters from both parties oppose ending the EPA's regulatory power. And older adults want lawmakers to lower prescription drug costs.

view newscast page
play newscast audioPlay

From the unprecedented election season to the latest environmental news, the Yonder Report looks back at stories that topped our weekly 2024 newscasts.

Fast food jobs increasing in CA despite rising minimum wage

play audio
Play

Monday, August 26, 2024   

New data show fast food jobs have been on the upswing in the four months since the minimum wage in the sector went from $16 to $20 an hour.

The Bureau of Labor Statistics found California added 11,000 new fast-food jobs from April to July and showed increases year over year each month since January.

Michael Reich, professor of economics at the University of California-Berkeley, said the data contradicts doomsday predictions from opponents of raising the minimum wage.

"The knock is that a minimum wage increase would lead to businesses closing, workers getting laid off, and much higher prices," Reich recounted. "That's been the knock on every minimum wage increase since 1938. Indeed, a large number of studies have found that minimum wages do not reduce employment in fast food."

Reich noted while fast food work is expanding, its growth has slowed because overall economic growth has slowed but not because of the higher minimum wage. He said the effect of higher fast-food workers' wages on the overall economy is too small to detect.

Reich pointed out higher wages have certainly benefited workers' bottom line, which leads to more spending in the local economy. They have also led to slightly higher restaurant prices.

"Fast food prices may have gone up one or two percent, compared to how much they increased in other states that did not raise their minimum wage," Reich explained. "That's not enough to reduce consumer spending. So the minimum wage essentially leads to an income transfer from the people who eat in those restaurants to the people who work in those restaurants."

Some individual fast food managers worried they would lose business if they increased their prices to offset higher labor costs. But Reich countered the cost increases affect all fast food restaurants, so individual businesses would not lose market share.


get more stories like this via email

more stories
The Farm Bill extension is in effect through Sept. 30, 2025, and includes nearly $31 billion in economic and disaster aid for farmers. (Adobe Stock)

Environment

play sound

Farmers in Wisconsin may be breathing a sigh of relief going into the new year with the farm bill extension but it may be temporary, as experts said …


Social Issues

play sound

More middle-aged and older South Dakotans had financial concerns this year, especially around health care, according to a new survey. Advocates for …

Social Issues

play sound

By Anya Petrone Slepyan for The Daily Yonder.Broadcast version by Roz Brown for New Mexico News Connection for the Public News Service/Daily Yonder Co…


Social Issues

play sound

Virginia's child welfare system grapples with a surge of unfounded reports that critics say stem from overly broad mandatory reporting laws, …

Olive, a poodle mix, has comforted more than 300 kids in Missouri's court system. (Photo courtesy of Therapy Paws)

Social Issues

play sound

A Missouri-based therapy dog has an inspiring journey that began as a homeless stray on the streets of Los Angeles. Olive, a ten-pound poodle mix…

Social Issues

play sound

California has more than 60,000 children in the foster care system and about 7,000 in extended care up to age 21 but many do not receive all the servi…

Social Issues

play sound

By Dwight Adams for Mirror Indy.Broadcast version by Joe Ulery for Indiana News Service reporting for the Mirror Indy-Free Press Indiana-Public News S…

 

Phone: 303.448.9105 Toll Free: 888.891.9416 Fax: 208.247.1830 Your trusted member- and audience-supported news source since 1996 Copyright © 2021