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The Impact of Minimum Wage Increases on Food and Kindred Products Prices: An Analysis of Price Pass-Through

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  • Lee, Chinkook
  • O'Roark, Brian
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    Abstract

    An input-output model is used to analyze price pass-through effects of a minimum wage increase on prices of the food and kindred products and food-service industries. These sectors employ a disproportionate share of minimum wage workers, but results suggest a $0.50 increase in the present minimum wage would increase food prices less than 1 percent for most of the 12 food and kindred products prices and 1 percent at eating and drinking places.

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    File URL: http://purl.umn.edu/33553
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    Bibliographic Info

    Paper provided by United States Department of Agriculture, Economic Research Service in its series Technical Bulletins with number 33553.

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    Date of creation: 1999
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    Handle: RePEc:ags:uerstb:33553

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    Related research

    Keywords: minimum wage; input-output analysis; food and kindred products industries; eating and drinking places; Demand and Price Analysis; Labor and Human Capital;

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    Cited by:
    1. Denis Fougere & Erwan Gautier & Herve Le Bihan, 2010. "Restaurant Prices and the Minimum Wage," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(7), pages 1199-1234, October.
    2. Werner, Thomas & Sell, Friedrich L. & Reinisch, David C., 2013. "Price effects of minimum wages: Evidence from the construction sector in East and West Germany," Working Papers in Economics 2013,4, Universität der Bundeswehr München, Economic Research Group.
    3. James M. MacDonald & Daniel Aaronson, 2000. "How do retail prices react to minimum wage increases?," Working Paper Series WP-00-20, Federal Reserve Bank of Chicago.
    4. Lee, Chinkook & Schluter, Gerald E. & O'Roark, Brian, 2000. "How Much Would Increasing the Minimum Wage Affect Food Prices?," Agricultural Information Bulletins 33598, United States Department of Agriculture, Economic Research Service.

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