California's $20 fast-food wage made workers stay, not leave

California raised the minimum wage for large fast-food chains to $20 per hour. This made wages go up, but workers also stopped quitting their jobs as much, and few jobs were lost.

For years, economists debated if big minimum wage hikes would kill jobs. This paper shows that in California's fast-food industry, the main effect was workers staying put. It suggests that higher wages can reduce turnover costs for businesses, offsetting some of the wage increase.