> No, the evidence cited is that a significant portion is also absorbed by companies making lower profits (and a small amount by higher prices). From the artic

> No, the evidence cited is that a significant portion is also absorbed by companies making lower profits (and a small amount by higher prices). From the article: The authors calculated that about 62 percent of the wage increase was absorbed through higher prices, while the rest was likely absorbed by a mix of reduced turnover and, crucially, lower profits for franchisees—hence the massive industry resistance. Bargaining power is undoubtedly an issue here, but the success of the increase in minimum wage can probably be attributed to it being uniform across similar businesses and in an industry that can't exactly move to the next state over (without loosing business).