How Do Employers Belonging to Marginalized Communities Respond to Minimum Wage Increases? The Case of Immigrant-Owned Businesses in Seattle

Minimum wage opponents often argue that businesses owned by marginalized communities, which include woman-owned, Black-owned, and immigrant-owned businesses, are exceptionally vulnerable to minimum increases. Little research has investigated this claim. Using a unique survey of Seattle includes owners’ nativity status was administered while the city began phase in its $15 ordinance, authors find respond higher ways largely conform responses other businesses. Nevertheless, franchises less likely than fire employees, reduce employees’ hours, or lower wages employees earning more per hour. Evidence suggests immigrant franchisees have likelihood passing increased labor costs onto because they use fewer rely heavily on family compared franchisees. The authors’ findings suggest firms nonmarginalized groups municipal-level increases comparable ways. may matter certain sectors economy others.