The Effect of Minimum Wage Policy on the Employment in the Media and Entertainment Industry

Abstract

Wage policy on employment in the media and entertainment industry, a field that combines both highly paid employees and entry-level workers. While most studies on minimum wage focus primarily on traditional low-income sectors, there has been far less at creative and digital industries, where flexible employment is prevalent. To address this gap, the study applies a qualitative multiple case study approach, using Netflix and Buzzfeed as examples. Both companies are headquartered in states (California and New York) that experienced significant minimum wage increases between 2010 and 2019. The findings suggest that Netflix, as a comparatively large company, absorbed the rising labor costs through investment in automation and outsourcing, thereby reducing the entry-level positions but strengthening the stability of those that remained. In contrast, Buzzfeed, facing greater financial pressure, responded with more layoffs and heavier reliance on freelancers, leading to more fragile employment. These results emphasize the heterogeneous effects of minimum wage legislation and highlight the importance of considering industry-specific contexts in labor markets and policy making.