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Minimum Wage and Restaurant Hygiene Violation: Evidence from Food Establishments in Seattle

44 Pages Posted: 27 Jun 2017  

Subir K. Chakrabarti

Indiana University Purdue University Indianapolis (IUPUI) - Department of Economics

Srikant Devaraj

Ball State University

Pankaj C. Patel

Villanova University - School of Business

Date Written: June 19, 2017

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.

Keywords: Minimum wage, health violations, hygiene quality

JEL Classification: J3, L83, I18

Suggested Citation

Chakrabarti, Subir K. and Devaraj, Srikant and Patel, Pankaj C., Minimum Wage and Restaurant Hygiene Violation: Evidence from Food Establishments in Seattle (June 19, 2017). Available at SSRN: https://ssrn.com/abstract=2992783 or http://dx.doi.org/10.2139/ssrn.2992783

Subir Chakrabarti

Indiana University Purdue University Indianapolis (IUPUI) - Department of Economics ( email )

425 University Boulevard
Indianapolis, IN 46202-5140
Germany

Srikant Devaraj (Contact Author)

Ball State University ( email )

Muncie, IN 47306-0340
United States

Pankaj Patel

Villanova University - School of Business ( email )

800 Lancaster Avenue
Villanova, PA 19085-1678
United States

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