Target's $15 wage promise could pressure restaurantsTarget's $15 wage promise could pressure restaurants

This post is part of the On the Margin blog.

Target Corp. this week said it plans to raise its workers’ minimum hourly wage to $11 next month. By the end of 2020, the minimum the retailer plans to pay its workers will be $15 an hour.

The decision by the Minneapolis-based company will continue to put pressure on restaurant companies to raise their wages as well. 

Anybody who employs restaurant workers in the current environment is probably paying more for those workers. Much of the publicity focuses on the higher minimum wages many states have required — which certainly drives up wages. But competition for labor is playing a greater role in driving up those labor costs.

Unemployment has been falling for years, and is currently 4.4 percent. R...