Advanced Search
MyIDEAS: Login to save this paper or follow this series

Decomposing Changes In Retail Food Wage Distributions, 1983-1998: A Semi-Parametric Analysis

Contents:

Author Info

  • Budd, John W.
  • McCall, Brian P.

Abstract

What role has the growing practice of eating out rather than at home played in the evolution of wages in retail food? Between 1983 and 1998, real wages fell for nearly all types of grocery store employees, whether they were relatively well paid, poorly paid, or somewhere in the middle. This resulted in an eight and a half percent decrease in the average real wage, but unlike many other industries, there was no increase in wage inequality. The "food away from home trend" is apparently connected to the deterioration in grocery store wages for all employees except those earning somewhere in the top ten percent of wages. Without this change in consumer behavior, average real grocery store wages would have risen by seven percent rather than falling by 12 percent. While harmful to nearly all grocery store employees, this trend has benefited many workers in the restaurant industry, where the average real wage rose by nearly twenty five percent. Because this growth was not evenly distributed, occurring primarily in the upper part of the wage distribution, wage inequality in this segment of retail food increased. Moreover, the increase in the fast food sector during this period is associated with decreasing real wage levels, or slower wage growth, in both the grocery and restaurant industries. The labor market institutions of minimum wage laws and labor unionization are also found to be important determinants of wage trends in retail food. Part-time employment is associated with lower wage outcomes, but over the last 20 years, the frequency of part-time work in these two industries actually declines. Overall, however, labor market institutions and changing demographic characteristics still leave much of the observed changes in real wages in retail food unexplained. The data source for this analysis is the Current Population Survey, supplemented with secondary data sources.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://purl.umn.edu/14327
Download Restriction: no

Bibliographic Info

Paper provided by University of Minnesota, The Food Industry Center in its series Working Papers with number 14327.

as in new window
Length:
Date of creation: 1999
Date of revision:
Handle: RePEc:ags:umrfwp:14327

Contact details of provider:
Postal: 317 Classroom Office Building, 1994 Buford Avenue, St. Paul, MN 55108-6040
Phone: 612-625-7019
Fax: 612-625-2729
Web page: http://foodindustrycenter.umn.edu/
More information through EDIRC

Related research

Keywords: Labor and Human Capital; Marketing;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Budd, John W. & McCall, Brian P., 1999. "The Grocery Stores' Wage Distribution: A Semi-Parametric Analysis Of The Role Of Retailing And Labor Market Institutions," Working Papers 14347, University of Minnesota, The Food Industry Center.
  2. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," NBER Working Papers 5956, National Bureau of Economic Research, Inc.
  3. Peter Gottschalk, 1997. "Inequality, Income Growth, and Mobility: The Basic Facts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 21-40, Spring.
  4. Kinsey, Jean D. & Senauer, Benjamin & King, Robert P. & Phumpiu, Paul F., 1996. "Changes In Retail Food Delivery: Signals For Producers, Processors And Distributors," Working Papers 14352, University of Minnesota, The Food Industry Center.
  5. George E. Johnson, 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 41-54, Spring.
  6. repec:wop:minnit:9603 is not listed on IDEAS
  7. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
  8. Wessels, Walter John, 1997. "Minimum Wages and Tipped Servers," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 334-49, April.
  9. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-81, September.
  10. Gary Burtless, 1995. "International Trade and the Rise in Earnings Inequality," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 800-816, June.
  11. Chinhui Juhn, 1999. "Wage inequality and demand for skill: Evidence from five decades," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(3), pages 424-443, April.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ags:umrfwp:14327. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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