BOSTON — A study released in April by the Harvard Business School suggests that higher minimum wages increase overall exit rates for restaurants and that lower quality restaurants, which are already closer to the margin of exit, are disproportionately impacted by increases to the minimum wage. The study was conducted by Dara Lee Luca and Michael Luca.
The study’s point estimates suggest that a $1 increase in the minimum wage leads to a 14% increase in the likelihood of exit for a 3 . . .
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