Bhagyashree Katare, PhD, Associate Professor in the Department of Agricultural Economics at Purdue University, will present the EEEP Seminar Series, “Does Wage Increase Impact Service Quality? Evidence from Restaurant Health Inspections” on April 12, 2023.
Abstract: This paper examines whether a wage increase affects the customer service quality provided by low-wage employees and if there are any spillover effects of wage increase on service quality offered by the employers. We use restaurant-level health inspections and leverage a large number of jurisdiction-level minimum wage changes between 2010 and 2019. We find that wage increase reduces overall health violations and improves service quality. These results are mainly driven by decrease in employee-associated violations. Employer-associated severe violations, that can cause adverse consumer health outcomes, increase in response to wage increase.
Speaker Bio: Dr. Katare is Associate Professor in the Department of Agricultural Economics at Purdue University. Her current research interests are in the economics of food, health, nutrition, particularly on the empirical analysis of consumption behavior related to health outcomes and wellbeing. Research program studies the effect of government policies, behavioral nudges, and economic interventions on individual health, education, and labor outcomes. Current work includes the effect of recent changes in governmental assistance programs and policies (minimum wage, food stamps, Medicaid) on food insecurity, food safety, and labor outcomes. Her research projects are funded through USDA and USAID grants.