UC Berkeley Institute for Research on Labor & Employment (IRLE)

@ucberkeleyirle.bsky.social

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The Institute for Research on Labor and Employment connects world-class research with policy to improve workers’ lives, communities, and society. irle.berkeley.edu

Effects of a $20 Minimum Wage: Evidence from Granular Data on Wages, Employment and Prices DENIS SOSINSKIY, University of California, Berkeley MICHAEL REICH, University of California, Berkeley April 1, 2026 Abstract On April 1, 2024, California implemented a $20 hourly wage floor for workers in large chains in fast food restaurants and snack and non-alcoholic beverage bars. The new standard, which corresponds to 69 percent of the state’s median full-time wage, surpasses all prior benchmarks in minimum wage policies and research. We use difference-in-differences (DiD) and triple difference (DDD) event study methods and granular data that permit distinguishing trends affecting the entire industry from those caused by the new minimum wage policy. Our granular pay data come from Glassdoor job postings and Square payroll data, granular mobility-based employment data from Advan, and granular prices scraped from over 2,000 restaurants in California and control states. We find that the policy increased average weekly wages for covered fast food workers by about 11 percent and did not reduce employment. Compared to controls, prices increased by 1.5 percent, equivalent to 6 cents for a $4 item. Employers passed about 50 percent of the higher wage costs to consumers as higher prices, consistent with a monopsony model.
Special Seminar. Can Economic Policy Make Life More Affordable? Jared Bernstein, former chair, Biden administration’s Council of Economic Advisers Discussants: Jesse Rothstein (Public Policy, Economics) and Laura Tyson (Haas) Moderated by Michael Reich (CWED). Wednesday, March 11 4:00–5:30 PM IRLE Conference Room 2521 Channing Way irle.berkeley.edu/events. Numerous polls show widespread dissatisfaction with the U.S. economy and, by extension, with both major political parties. In response, Democrats and Republicans are advancing competing approaches to make the economy more affordable. Can either approach succeed?
Those out-of-pocket costs do impact people's decisions to get care, so that's worrisome as well. Miranda Dietz, Health Care Program Director, UC Berkeley Labor Center.
They are organizing together across districts with parents and students to demand the schools that every California student deserves. Danielle Mahones, UC Berkeley Labor center, on the wage of CA teacher strikes
California Policy Lab: We're hiring
Economic Policy Agendas to Rebuild America, with Dani Rodrik (Harvard), Michael Reich (Berkeley), Jennifer Harris (Hewlett), and Paul Pierson (berkeley. Sponsored by IRLE and BESI
Industrial Relations Call for Papers. Special Issue on the gender wage gap. Extended abstracts are due April 3, 2026.
Minimum Wages and Monopsony Power: MichalReichFest. June 6, 2025. Learn more: irle.berkeley.edu/events
Minimum Wages & Monopsony Power Conference 2025. MichaelReichFest. June 6, 2025 at UC Berkeley's Alumni House and streaming via Zoom. Learn more and register: irle.berkeley.edu/events
Michael Reich on how political polarization has impacted debate on the minimum wage
IRLE Call for Proposals: 2025-2026 Research Awards: Faculty Research Awards (Up to $30K); Dissertation Fellowship ($15K stipend + tuition/fees); Grad Student Research Awards (Up to $6K)
UC Berkeley Climate and Society Center