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In recent years, big companies like Amazon have publicly increased the minimum wage they pay workers. And it turns out those moves can lead to nearby businesses also bumping up their pay, according to a recent working paper. 

“If a bunch of large employers in the labor market raise pay, other employers are going to be compelled to raise pay a little bit too in order to make sure that they can recruit and retain their workforce,” Ben Zipperer, an economist at the left-leaning Economic Policy Institute, told Insider in March.

Small businesses in those details ⇒

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