| dc.description.abstract | After the Council of Labor Affair announced the rise of the minimum wage on July 1, 2007, it has brought many impacts, especially on industries that hire low-wage employees, like large fast-food and traditional snack industries. The government provided a subsidy policy for a year, but the traditional snack industry was excluded. Thus it can be seen that the traditional snack employers’ positions were underestimated. Nevertheless, the rise of minimum wage affected not only large fast-food but also traditional snack employers. Therefore, this study would focus on traditional snack industries that few people cared for before. These sides mainly include legal compliance, employment, profits, and staff beneficial to confer.
In this study, we investigated diners near 20 different universities in Taiwan. We classified diners into different categories according to the location of each employer. One factor is the degree of urbanization index, and the other is the market competition of the area where the diners were located. Then we addressed four assumptions to know the degree to which the rise of the minimum wage had impacts on the traditional snack industry. First, we supposed that the government policies have forced diners to comply with the law. Second, once diners increased wage per hour and therefore rose their own labor cost, the employers would reduce the quantities of employers. Third, when diners increased wage per hour and rose the labor cost, employers’ profits would be reduced. Fourth, once employers’ profits were reduced, employers would reduce beneficial of employee. Therefore, employees’ wage and benefit would be showed trade-off relationship.
Our empirical results confirm that employers with the first tier cities and high market competition diners have higher degree of compliance of law than employers in second tier cities and low market competition diners did. In addition to that, there is a remarkably negative impact on the amounts of employees. The results also show that the adjustment of the minimum wage surpassed the anticipation of employers, and it caused employer not to comply with law. To sum up, no matter which samples we study, the rise of minimum wage indeed produced negative impacts on employer’ profits and make them reduce benefit of employees to face the rise of minimum wage this time. | en_US |