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Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit

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This study by Dara Lee Luca and Michael Luca examines the impact of minimum wage increases on restaurant closures in the San Francisco Bay Area, using data from 2008 through 2016 from the review platform Yelp. The study demonstrates that higher minimum wages increase closure rates among lower-rated restaurants, while higher-rated restaurants are largely insulated from changes.

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