IDEAS home Printed from https://ideas.repec.org/a/ags/ijfaec/266434.html
   My bibliography  Save this article

The Impact Of Minimum Wage On Food Away From Home Expenditure Using Structural Equation Model

Author

Listed:
  • Seok, Jun Ho
  • Kim, GwanSeon
  • Mark, Tyler

Abstract

This paper develops the proxy variable for food away from home price to solve the omitted variable problem in FAFH expenditure. Secondly, this paper incorporates two equations for FAFH price and demand to capture the minimum wage shock on food away from home expenditure. Decomposing food away from home expenditures to demand and price, this study determines the path of minimum wage shock on food away from home expenditures. A structural equation model framework with data from Bureau of Labor Statistics for periods through 2005 to 2010 is used. We find that the minimum wage has a positive relationship with the price level of food away from home, but a price does not have a significant effect on food away from home demand. It infers that the employment in restaurant industries may not be reduced by an increase of minimum wage.

Suggested Citation

  • Seok, Jun Ho & Kim, GwanSeon & Mark, Tyler, 2017. "The Impact Of Minimum Wage On Food Away From Home Expenditure Using Structural Equation Model," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(3), July.
  • Handle: RePEc:ags:ijfaec:266434
    DOI: 10.22004/ag.econ.266434
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/266434/files/Vol5.No3.pp45.pdf
    Download Restriction: no

    File URL: https://ageconsearch.umn.edu/record/266434/files/Vol5.No3.pp45.pdf?subformat=pdfa
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.266434?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ijfaec:266434. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iiaaktr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.