44 Pages Posted: 27 Jun 2017
Date Written: June 19, 2017
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: 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