Date of Award

5-2021

Degree Type

Creative Project

Degree Name

Master of Science (MS)

Department

Economics and Finance

Committee Chair(s)

Benjamin Blau (Committee Chair)

Committee

Benjamin Blau

Committee

Tyler Brough

Committee

Pedram Jahangiry

Abstract

The minimum wage in San Francisco was increased from $6.75 to $8.5 per hour in November 2003. This was primarily aimed to improve low-income workers' well-being, especially racial and ethnic minorities. This paper conducts a difference-in-difference model using a synthetic control group for San Francisco, looking into a possible change in employees' demographic composition in the Accommodation & Food Services, and Manufacturing industries. The results indicate that the ratio of white employees increased significantly, suggesting that a labor-labor substitution happened in the following years of the minimum wage increase.

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