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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A 2021 study studied this question.