John Phelan: Wage mandates drive investment toward machines, away from labor

For the last few years there’s been a pretty brutal meme circulating online. You might have seen it. It shows a customer-operated ordering machine in a restaurant with the caption “This is a fast food worker on $15 minimum wage.” New research suggests that those meme makers might have been right.

In a new paper for the National Bureau of Economic Research (“People Versus Machines: The Impact of Minimum Wages On Automobile Jobs”), economists Grace Lordan and David Neumark examine whether minimum-wage laws prompt employers to switch to using machines instead of labor. Their research focuses particularly on “automatable jobs […]

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