A recent paper by economists at the University of California-Berkeley and Brandeis University looked at the impact of Amazon’s decision to raise its starting pay. Researchers found that Amazon’s decision to hike its starting wage to $15 an hour in October 2018 had a positive impact on other wages in local labor markets where Amazon operates. The company’s pay raise resulted in a 4.7% increase in the average hourly wage among other employers in the same labor market.
The research also showed no significant job losses after Amazon and other local employers raised their starting wages. The authors found that the probability of employment decreased only 0.8 percentage points following the salary increases.