Evidence of the Unintended Labor Scheduling Implications of the Minimum Wage.

This article empirically investigates the impact of minimum wage increases on firms' labor scheduling practices using detailed scheduling data from a medium-sized chain of fashion retail stores in California and Texas. The study finds that a $1 increase in the minimum wage leads to a negligible change in total labor hours but causes a 27.7% increase in the number of workers scheduled weekly and a 19.4% decrease in hours per worker, resulting in reduced total wage compensation and lower eligibility for benefits such as healthcare and retirement plans. Additionally, minimum wage hikes are associated with less consistent weekly and daily work schedules, which may negatively affect worker welfare despite stable overall employment levels. These findings highlight an operational mechanism through which minimum wage policies can unintentionally diminish worker welfare, suggesting that policymakers should consider firms' scheduling tradeoffs when designing minimum wage regulations.