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Minimum Wage And Food Prices: An Analysis Of Price Pass-Through Effects

  • Lee, Chinkook
  • Schluter, Gerald E.
  • O'Roark, Brian

An Input-Output model is used to analyze price pass-through effects of a minimum wage increase on prices of the food and kindred product and food-service industry. Although these sectors employ a disproportionate share of minimum wage workers, our results suggest a $0.50 increase in the minimum wage would minimally affect food prices.

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File URL: http://purl.umn.edu/34561
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Article provided by International Food and Agribusiness Management Association (IAMA) in its journal International Food and Agribusiness Management Review.

Volume (Year): 03 (2000)
Issue (Month): 01 ()
Pages:

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Handle: RePEc:ags:ifaamr:34561
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  1. Chinkook Lee & Darryl Wills, 1989. "Effects of dollar depreciation on agricultural prices and income," Agribusiness, John Wiley & Sons, Ltd., vol. 5(1), pages 43-51.
  2. Gron, Anne & Swenson, Deborah L, 1996. "Incomplete Exchange-Rate Pass-Through and Imperfect Competition: The Effect of Local Production," American Economic Review, American Economic Association, vol. 86(2), pages 71-76, May.
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