If something seems too good to be true, it probably is. Unfortunately, many journalists did not remember that when covering a new report claiming $15-an-hour wages would raise fast-food prices only 4 percent. A closer look shows that the study underlying the report had major methodological errors. More serious analysis shows that $15-an-hour wages would raise fast-food prices by over a third — at least until stores automate work currently done by humans.

The study, by Purdue University economists Richard Ghiselli and Jing Ma, has made quite a splash. The Washington Post covered it extensively, concluding that the higher wages for fast-food workers would add just 17 cents to the cost of a Big Mac. Local papers have covered it too. ThinkProgress argued that the study undercuts arguments against $15-an-hour fast-food wages. If the study were accurate, it would be hard to argue with them. However, Purdue’s report offers a case study in why journalists should consult multiple sources before going to press. Simple back-of-the-envelope calculations show that the Purdue results are impossible.

Read the article “Study on Fast Food Wages, Touted by Press, is Wrong” on nationalreview.com.