California’s April 1 minimum wage hike for fast food restaurant workers was mainly paid for by consumers in the form of higher prices for fast food and by restaurant owners in the form of lower profit margins, according to a recent study by the Institute for Research on Labor and Employment (IRLE).
Employment remained stable, meaning that workers received the full benefit of the minimum wage hike.
Specifically, the April wage hike, which translated into an 18 percent raise on average for 750,000 fast food and related workers, resulted in a 3.7 percent rise in customers’ fast food bills, or about 15 cents for a $4 item, according to the study….