The Initial Nonprofit Exposure and Response to Seattle's Minimum Wage Ordinance.

Nearly 40 local governments adopted minimum wage rates higher than the federal minimum in the last decade. Research on such laws focuses on employment and price adjustments of for-profit firms. Higher minimum wage rates, however, may pose unique challenges to community-based nonprofit organizations, many of which serve vulnerable communities and have limited ability to modify business practices. We use survey and in-depth interview data with more than 125 nonprofit executives to explore how nonprofit organizations were exposed to, understood, and responded to the initial phase-in of Seattle's $15 minimum wage ordinance. Although most nonprofits with low-wage workers do not report substantial programmatic changes in response to the minimum wage, we do find evidence nonprofits are pursuing several avenues to raise revenue to cover higher anticipated labor costs. Results suggest that the channels of adjustment available to nonprofits have a different character than those available to for-profit firms.

Responding to an Increased Minimum Wage: A Mixed Methods Study of Child Care Businesses during the Implementation of Seattle's Minimum Wage Ordinance.

Low wages are a persistent feature of child care jobs and affect the quality of children's care. In this article, we examine how Seattle's $15 minimum wage affects the local child care sector using three datasets: (1) state administrative records on approximately 200 Seattle-based child care businesses; (2) a longitudinal employer survey of 41 child care centers; and (3) in-depth interviews of 15 Seattle child care center directors. Findings suggest that the increase to $15/hour affects the majority of child care businesses. Providers' most commonly responded to higher labor costs by raising tuition and reducing staff hours or headcount-strategies that may negatively impact low-income families and staff. While raising wages may help some child care employees, considering the full range of effects of this policy underscores the need for a systems approach to supporting the child care sector as a whole.