The Costs to Fast-Food Restaurants of a Minimum Wage Increase to $10.50 per Hour
AbstractAs fast-food workers join picket lines around the country, media outlets are questioning how much a minimum wage increase would cost businesses, fast-food restaurants in particular. Jeannette Wicks-Lim and Robert Pollin examine the potential impact of a proposal to raise the federal minimum wage, concluding that the proposed hike to $10.50 would impose only modest costs, and could� meaningfully improve living standards for low-wage workers while avoiding the unintended consequence of reducing employment. They explain how they arrived at their key finding:�the average fast-food establishment�could�fully�cover the costs from the $10.50 minimum by raising prices 2.7 percent.
Download InfoIf 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.
Bibliographic InfoPaper provided by Political Economy Research Institute, University of Massachusetts at Amherst in its series Research Briefs with number peri_fast_food_wages.
Date of creation: 2013
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-16 (All new papers)
- NEP-HME-2013-11-16 (Heterodox Microeconomics)
- NEP-PKE-2013-11-16 (Post Keynesian Economics)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral 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: (Judy Fogg).
If references are entirely missing, you can add them using this form.