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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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Author Info
Lee, Chinkook
O'Roark, Brian
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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Publisher 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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  1. 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. [Downloadable!]
  2. Lee, Chinkook & Schluter, Gerald & 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. [Downloadable!]
  3. Fougère, D. & Gautier, E. & Le Bihan, H., 2008. "Restaurant Prices and the Minimum Wage," Documents de Travail 216, Banque de France. [Downloadable!]
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  4. Sara lemos, 2004. "The Effect of the Minimum Wage on Prices," Discussion Papers in Economics 04/7, Department of Economics, University of Leicester. [Downloadable!]
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  5. Sara Lemos, 2004. "The Effect of the Minimum Wage on Prices in Brazil," Discussion Papers in Economics 04/6, Department of Economics, University of Leicester. [Downloadable!]
    Other versions:
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