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Thread: Minimum Wage and Restaurant Hygiene Violations

  1. #1

    Default Minimum Wage and Restaurant Hygiene Violations

    Another minimum wage study.

    http://marginalrevolution.com/margin...violation.html

    "This is evidence from Seattle, from a new paper by Subir K. Chakrabarti, Srikant Devaraj, and Pankaj C. Patel. Here is the abstract:

    We assess the effects of rise in minimum wages on hygiene violation scores in food service establishments. Using a difference-in-difference analysis on hygiene rating of food establishments in Seattle [where minimum wage increased annually between 2010 and 2013] as the treated group and from New York City [minimum wage was constant] as the control group, we find an increase in real minimum wage by $0.10 increased total hygiene violation scores by 11.45 percent. Consistent with our theoretical model, an increase in minimum wage in Seattle has no influence in more severe (red) violations, and a significant increase in less severe (blue) violations. Our findings are consistent while using an alternate control group – Bellevue City, King County, located near Seattle.

    Of course this makes perfect sense. Even when minimum wages do not much decrease employment, they are not a free lunch, so to speak. “There ain’t no such thing as a healthy free lunch” [TANSTAAHFL, the pronunciation differs only slightly] could be the new catchphrase."



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  3. #2

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    Do New York and Seattle have the same standards for their health inspections? Are the as thorough in their inspections? A better comparison would be Seattle business health ratings before and after the wage change for the same restaurants rather than two cities on opposite ends of the country.
    "The only thing we have to fear is.... fear itself!" Franklin Delano Roosevelt.
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  4. #3

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    Quote Originally Posted by Zippyjuan View Post
    Do New York and Seattle have the same standards for their health inspections? Are the as thorough in their inspections? A better comparison would be Seattle business health ratings before and after the wage change for the same restaurants rather than two cities on opposite ends of the country.
    "Our findings are consistent while using an alternate control group – Bellevue City, King County, located near Seattle."

  5. #4

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    Quote Originally Posted by Krugminator2 View Post
    "Our findings are consistent while using an alternate control group – Bellevue City, King County, located near Seattle."
    It is geographically closer, but they are still very different cities. Bellevue City has a median income of $98,000 a year with median age of 37.4 and the average home selling for $716,00 while Seattle has median income of $80,000 and age of 35.5 years and $588,000 homes. Bellevue is richer and older so will have different sorts of restaurants. The best would be to compare the same restaurants in the same city to see if they changed over time and how.

    http://www.city-data.com/city/Bellevue-Washington.html

    http://www.city-data.com/city/Seattle-Washington.html
    Last edited by Zippyjuan; 07-13-2017 at 08:29 PM.
    "The only thing we have to fear is.... fear itself!" Franklin Delano Roosevelt.
    "Be afwaid. Be berry afwaid" Donald Trump.

    The optimists built this country and made it great- not the fearful. Fear can only destroy.

    I am Zippy and I approve of this post. But you don't have to.

  6. #5

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    Quote Originally Posted by Zippyjuan View Post
    It is geographically closer, but they are still very different cities. Bellevue City has a median income of $98,000 a year with median age of 37.4 and the average home selling for $716,00 while Seattle has median income of $80,000 and age of 35.5 years and $588,000 homes. Bellevue is richer and older so will have different sorts of restaurants. The best would be to compare the same restaurant in the same city to see if they changed and how.

    http://www.city-data.com/city/Bellevue-Washington.html

    http://www.city-data.com/city/Seattle-Washington.html
    Actually those seem like almost identical cities based on the demographics you provided. And given that they are subject to the same health codes, it seems like an almost ideal comparison.
    Last edited by Krugminator2; 07-13-2017 at 08:33 PM.

  7. #6

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    Quote Originally Posted by Krugminator2 View Post
    Actually those seem like almost identical cities based on the demographics you provided. And given that they are subject to the same health codes, it seems like an almost ideal comparison.
    Almost 25% higher median income is pretty significant difference.
    "The only thing we have to fear is.... fear itself!" Franklin Delano Roosevelt.
    "Be afwaid. Be berry afwaid" Donald Trump.

    The optimists built this country and made it great- not the fearful. Fear can only destroy.

    I am Zippy and I approve of this post. But you don't have to.

  8. #7

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    Quote Originally Posted by Zippyjuan View Post
    It is geographically closer, but they are still very different cities. Bellevue City has a median income of $98,000 a year with median age of 37.4 and the average home selling for $716,00 while Seattle has median income of $80,000 and age of 35.5 years and $588,000 homes. Bellevue is richer and older so will have different sorts of restaurants. The best would be to compare the same restaurants in the same city to see if they changed over time and how.

    http://www.city-data.com/city/Bellevue-Washington.html

    http://www.city-data.com/city/Seattle-Washington.html


    Is this even serious? You think there are two totally "different sorts of restaurants" based on a less than two year median age difference? You think people making almost six figures are going to totally different places than people making 80K? You think a resident with a ~600k home is markedly different than one with a ~700k home? As if one goes to burger joints and the other to 4 star restaurants?

    This is barely worthy of a comment except to say that you took anything you could possibly find to distort it without a serious analysis.



    Quote Originally Posted by Zippyjuan View Post
    Almost 25% higher median income is pretty significant difference.

    Hardly. Not when it comes to dining out. 80k vs 98k could be two salesmen in the same role. You think they are eating lunch at different places? 80k vs 98k could be a middle management guy and his boss. People in that range eat at fast food, fast casual, casual, high end and everything in between. 80k vs 98k represents a job and one level above.
    Last edited by NorthCarolinaLiberty; 07-15-2017 at 12:48 AM.
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    ...I believe that when the government is capable of doing a thing, it will.
    Quote Originally Posted by Zippyjuan View Post
    I do think that ID should be required for certain things like carrying a concealed weapon...




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