Re:Amazon raises minimum wage to $15 for all US employees
by AnthonyMouse on Wednesday October 03, 2018 @12:51AM
(#18127704)
> Empirically, the argument that raising the minimum wage would close these warehouses has an extremely low prior probability. Amazon's warehouses exist where they do because Amazon's customers exist where they do.
That determines the region, not the town. Equalize the labor cost and the optimal location may move significantly, e.g. to border the city from a different side. It would tend to move it from an area with low labor costs to an area with higher labor costs (and therefore cost of living) but closer proximity to customers or transport infrastructure. And making 50% more in a town with double the cost of living is no raise.
That determines the region, not the town. Equalize the labor cost and the optimal location may move significantly, e.g. to border the city from a different side. It would tend to move it from an area with low labor costs to an area with higher labor costs (and therefore cost of living) but closer proximity to customers or transport infrastructure. And making 50% more in a town with double the cost of living is no raise.