The CA Minimum Wage Increase: Summing Up (marginalrevolution.com)

Alex Tabarrok summarizes two joint research papers on California’s 2020 $20 fast-food minimum wage, finding that wages rose about 8% but employment fell roughly 2–4% (around 18,000 jobs lost). He reports that restaurant prices increased in California by about 3.3–3.6% while other CPI categories showed no similar movement, and that the implied quantity declines from demand estimates match the employment reductions. Overall, he argues the results suggest much of the employment impact comes from price pass-through reducing demand rather than substitution toward automation, with welfare gains for some workers offset by higher costs and job losses—likely with a regressive consumer burden.