California's $20 fast-food wage did not cut jobs, but it did cut worker turnover

California raised the minimum wage for fast-food workers to $20 per hour. This did not lead to job losses, but it did make workers less likely to quit their jobs.

The standard economic theory says that raising wages too much will lead to job cuts. This paper suggests that for fast-food workers, higher wages might actually stabilize the workforce. This means employers could see lower costs from training new staff, even with higher pay.