Local Minimum Wages and Local Business Conditions: Survey results from Oakland, California

Abstract

In March 2015 Oakland, California increased its minimum wage from $9 to $12.25 per hour. This paper presents a survey that asked Oakland businesses both about general business conditions and about their responses to the higher minimum wage. The survey finds widespread effects on employment, wages, and prices, with particularly significant effects in the food service sector. While the minimum wage hike appears to have been a significant factor in driving these changes, other challenges were more significant for survey respondents. These changes occurred in a city that is experiencing an influx of wealthy new arrivals and rising property values.