3 ms·
Why does the title mention "Neural net"? The words do not appear on the linked page. Actual paper behind paywall: https://pubsonline.informs.org/doi/pdf/10.128
by nanis 5y ago
Why does the title mention "Neural net"? The words do not appear on the linked page.
Actual paper behind paywall: https://pubsonline.informs.org/doi/pdf/10.1287/mksc.2021.1294 https://pubsonline.informs.org/doi/pdf/10.1287/mksc.2021.129...
Since restaurants and not individual waitstaff were reviewed, it is not possible to say whether workers became more motivated or restaurants laid off/reduced the hours of marginal workers.
The following is a stretch:
> “Our data show that, for a particular class of restaurants, consumers benefit from an increase in [minimum] wage because employees are motivated and owners are motivated to provide better service,” Kadiyali said. “The discussion around minimum wage has been all around how prices will go up, and consumers will be worse off. But we find, in our research, that consumers are happier with the overall quality.”
The subset of consumers that might benefit is the subset who still do go to these restaurants. Plus, while a given interaction might have become more pleasant, the number of restaurant experiences is not necessarily constant between pre-/post- minimum wage increase or it is not necessarily the same people as before getting the benefit of more pleasant service.
This is all assuming the press release correctly describes the paper.
- verdverm 5y agoIt may also be the case that this effect is limited in time, until the pay to COL ratio approaches the pre-raise point.