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The Impact of a City-Level Minimum-Wage Policy on Supermarket Food Prices in Seattle-King County

Author

Listed:
  • Jennifer J. Otten

    (Environmental and Occupational Health Sciences, Center for Public Health Nutrition, University of Washington, Seattle 98195, WA, USA)

  • James Buszkiewicz

    (Epidemiology, Center for Public Health Nutrition, University of Washington, Seattle 98195, WA, USA)

  • Wesley Tang

    (Epidemiology, Center for Public Health Nutrition, University of Washington, Seattle 98195, WA, USA)

  • Anju Aggarwal

    (Epidemiology, Center for Public Health Nutrition, University of Washington, Seattle 98195, WA, USA)

  • Mark Long

    (Daniel J. Evans School of Public Policy and Governance, University of Washington, Seattle 98195, WA, USA)

  • Jacob Vigdor

    (Daniel J. Evans School of Public Policy and Governance, University of Washington, Seattle 98195, WA, USA)

  • Adam Drewnowski

    (Epidemiology, Center for Public Health Nutrition, University of Washington, Seattle 98195, WA, USA)

Abstract

Background : Many states and localities throughout the U.S. have adopted higher minimum wages. Higher labor costs among low-wage food system workers could result in higher food prices. Methods : Using a market basket of 106 foods, food prices were collected at affected chain supermarket stores in Seattle and same-chain unaffected stores in King County (n = 12 total, six per location). Prices were collected at 1 month pre- (March 2015) and 1-month post-policy enactment (May 2015), then again 1-year post-policy enactment (May 2016). Unpaired t-tests were used to detect price differences by location at fixed time while paired t-tests were used to detect price difference across time with fixed store chain. A multi-level, linear differences-in-differences model, was used to detect the changes in the average market basket item food prices over time across regions, overall and by food group. Results : There were no significant differences in overall market basket or item-level costs at one-month (−$0.01, SE = 0.05, p = 0.884) or one-year post-policy enactment (−$0.02, SE = 0.08, p = 0.772). No significant increases were observed by food group. Conclusions : There is no evidence of change in supermarket food prices by market basket or increase in prices by food group in response to the implementation of Seattle’s minimum wage ordinance.

Suggested Citation

  • Jennifer J. Otten & James Buszkiewicz & Wesley Tang & Anju Aggarwal & Mark Long & Jacob Vigdor & Adam Drewnowski, 2017. "The Impact of a City-Level Minimum-Wage Policy on Supermarket Food Prices in Seattle-King County," IJERPH, MDPI, vol. 14(9), pages 1-12, September.
    • Handle: RePEc:gam:jijerp:v:14:y:2017:i:9:p:1039-:d:111420
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    References listed on IDEAS

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    Cited by:

    1. James Buszkiewicz & Cathy House & Anju Aggarwal & Mark Long & Adam Drewnowski & Jennifer J. Otten, 2019. "The Impact of a City-Level Minimum Wage Policy on Supermarket Food Prices by Food Quality Metrics: A Two-Year Follow Up Study," IJERPH, MDPI, vol. 16(1), pages 1-14, January.

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