When cities set minimum wages near or above the median (Kaitz > 0.8), hours fall and small-business closures rise despite headline pay gains. Seattle’s hours losses at $13 and NYC’s proposed $30 (≈1.1 Kaitz) exemplify compression risks at the wage floor.
— Establishes practical thresholds for wage policy, shaping urban inequality, employment opportunities, and the survival of service-sector firms that anchor neighborhood economies.
2025.08.21
78% relevant
The critique of raising NYC’s minimum wage to $30 aligns with evidence that very high Kaitz ratios reduce hours and can yield net earnings losses, highlighting compression risks at the wage floor for small businesses and low-wage workers.
Aporia
2025.08.20
82% relevant
The cited natural experiment finding a ~3% employment decline after California’s sectoral fast‑food wage hike aligns with concerns that high wage floors near sectoral medians compress labor demand, echoing the Kaitz-threshold mechanism behind hours/job losses.
Santiago Vidal Calvo
2025.08.20
100% relevant
The article calculates NYC’s $30 proposal would push the Kaitz index to ~1.1 and cites evidence that high Kaitz levels trigger hours cuts and closures.
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