• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar

Counter Markets

Financial Newsletter for Free Marketeers and Libertarian Entrepreneurs

  • Home
  • Counter Markets Newsletter
  • Members Area

Minimum Wage Hikes Are Killing Jobs in California’s Poorest Communities, Study Says

April 26, 2019 by Admin

By Tim Pearce

California’s minimum wage increase has cost the state thousands of jobs worth of growth in the state’s booming restaurant industry, according to a recent study by the University of California Riverside.

Delayed Effects

California passed a bill in 2016 to bring the state’s minimum wage up to $15 an hour. For businesses with more than 25 employees, the state’s minimum wage rose to $12 in January and will hit $15 in January of 2022. Other businesses have until 2023 before the full $15-an-hour minimum takes effect.

“The research does not suggest that the minimum wage should not rise or that rising wages do not have any benefits,” the study’s author Christopher Thornberg said in a statement, according to Restaurant Business Online.

“However, increases to the state’s minimum wage in recent years have been the fastest since California first set a minimum wage in 1916 — and that pace is creating certain negative consequences for smaller businesses and people who need the most help rising out of poverty,” Thornberg said.

Minimum Wage Hurts Restaurants Most

“Data analysis suggests that while the restaurant industry in California has grown significantly as the minimum wage has increased, employment in the industry has grown more slowly than it would have without minimum wage hikes,” the study, published in April, says. “The slower employment is nevertheless real for those workers who may have found a career in the industry.”

Researchers studied the minimum wage’s current effects on businesses from high-end restaurants to fast-food shops. They found the minimum wage has more of an impact on full-service restaurants where customers are served by waiters and food is brought straight to the table. Researchers also found that the minimum wage slowed growth more in low-income areas.

“The impact of a higher real minimum wage on employment growth is roughly twice as high in low income compared to higher income communities in full-service restaurants,” the study says. Employment throughout the restaurant industry is affected more in poorer areas.

Researchers estimate that the minimum wage increases will cost the state roughly 30,000 jobs from 2017 to 2022.

“The model suggests that there would be 30,000 fewer jobs in the industry from 2017 to 2022 as a result of the higher minimum wage,” the study says. “Over the period 2013-2022, therefore, the number of new jobs in the full-service industry will grow by 120,000, but would have grown by 160,000.”

Tim Pearce graduated from Hillsdale College in 2017 and is now a reporting fellow at the Daily Caller News Foundation.

This article is republished with permission from the Daily Caller. 

This article was sourced from FEE.org

Top image credit: The All-Nite Images from NY, NY, USA [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)]

The Counter Markets Newsletter will show you how to live free of government and corporate tyranny while growing your wealth and liberty

Members paid $250 to access the powerful tools, strategies, and resources inside this newsletter...

...but we'll give you your first issue absolutely FREE


Here's what's inside:


  • How to become invisible to mass surveillance leveraging cryptocurrency, privacy tools, and encryption to survive the digital revolution - pg 7
  • If you're an entrepreneur, listen up: You have an ENORMOUS opportunity to serve an emerging, growing market of young crypto-enthusiasts who want to do business with you, regardless of what you sell (they’re just waiting for you to offer THIS and they'll flock to you - it’s inevitable) - pg 15
  • 6 ways to acquire land and obtain higher levels of independence even if you don’t want to sell your home and move...you’re stuck in an urban area for work...you have poor credit...or you can’t afford a down payment...ANYONE can find wealth-building land for purchase or rent using these proven strategies - pg 20
  • And a whole lot more than this...
  • PLUS, get our exclusive Bitcoin & Silver Reports breaking down the factors driving their prices, the trends to pay attention to, and how to quickly capitalize on opportunities when they appear for long-term profits and financial security. 
counter markets newsletter

You'll also receive our exclusive daily emails with tips, tactics, and promotions for living free in an unfree world. 


Enter your name and email below to get your issue of the Counter Markets Newsletter for FREE!


Filed Under: Uncategorized Tagged With: California, Employment, Minimum Wage, Poverty, Tim Pearce

Primary Sidebar

Want a FREE issue of the Counter Markets Newsletter?


(Members paid $250 for the powerful tools, strategies, and resources inside, but we'll give you your first issue FREE)

counter markets newsletter
  • How to become invisible to mass surveillance leveraging cryptocurrency, privacy tools, and encryption to survive the digital revolution - pg 7
  • If you're an entrepreneur, listen up: You have an ENORMOUS opportunity to serve an emerging, growing market of young crypto-enthusiasts who want to do business with you, regardless of what you sell (they’re just waiting for you to offer THIS and they'll flock to you - it’s inevitable) - pg 15
  • 6 ways to acquire land and obtain higher levels of independence even if you don’t want to sell your home and move...you’re stuck in an urban area for work...you have poor credit...or you can’t afford a down payment...ANYONE can find wealth-building land for purchase or rent using these proven strategies - pg 20
  • And a whole lot more than this...
  • PLUS, get our exclusive Bitcoin & Silver Reports breaking down the factors driving their prices, the trends to pay attention to, and how to quickly capitalize on opportunities when they appear for long-term profits and financial security. 

PLUS, receive our exclusive daily emails with tips, tactics, and promotions for living free in an unfree world. 

Recent Posts

Building The Parallel Economy In Mexico – Derrick Broze (Monerotopia 2024)

December 7, 2024 By Admin

Becoming Sovereign – “Solutions Watch” with James Corbett

November 19, 2024 By Admin

Can Solstream Disrupt the Big Tech Streaming Monopoly?

July 14, 2024 By Admin

100 Miles South Of Salt Lake City, A New Type Of Off-Grid Community

July 8, 2024 By Admin

These Are All The Countries Offering Digital Nomad Visas

June 8, 2024 By Admin

© 2025 · Counter Markets | Support | Terms of Service | Privacy Policy | Refund Policy