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Submission + - Harvard Study Finds Increased Min Wage Causes Restaurant Failures (ssrn.com)

mattwarden writes: A study by the Harvard Business School looked at the impact on city area restaurants when the minimum wage is increased. Restaurant failure rates were computed per star level. The highest tier restaurants (5 star) experienced no significant effect, perhaps because they have no minimum wage workers or have large enough margins to absorb the additional labor cost. Not so with the remainder. For example, median quality restaurants (3.5 star) experience a 14% increase in likelihood of failure with a minimum wage increase of $1/hr.

This does not necessarily mean unemployment increases, as the study looks through the lens of restaurant failures, and counteracting forces could lead to stable employment levels. However, the study does suggest minimum wage causes major disruption to the restaurant industry.

Businesses

Submission + - Bad data led to BP Oil Spill & Financial Meltd (balancedinsight.com)

mattwarden writes: Flying blind when making decisions without supporting data is bad enough, but even worse is believing your data is giving you insight into a process or situation when it isn't. "I'd rather be blind than misled."

Greater risk may result when an entity improperly interprets its data, or believes its data can answer questions that it can't answer. In fact, bad or misunderstood data contributed to both the current BP oil spill crisis and the bank meltdowns of 2008-09.

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