IDEAS home Printed from https://ideas.repec.org/a/ags/ifaamr/34561.html
   My bibliography  Save this article

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

Author

Listed:
  • Lee, Chinkook
  • Schluter, Gerald E.
  • 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 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.

Suggested Citation

  • Lee, Chinkook & Schluter, Gerald E. & O'Roark, Brian, 2000. "Minimum Wage And Food Prices: An Analysis Of Price Pass-Through Effects," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(1), pages 1-18.
    • Handle: RePEc:ags:ifaamr:34561
    DOI: 10.22004/ag.econ.34561
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/34561/files/03010111.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.34561?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jennifer J. Otten & James Buszkiewicz & Wesley Tang & Anju Aggarwal & Mark Long & Jacob Vigdor & Adam Drewnowski, 2017. "The Impact of a City-Level Minimum-Wage Policy on Supermarket Food Prices in Seattle-King County," IJERPH, MDPI, vol. 14(9), pages 1-12, September.
    2. Lekunze, Joseph Nembo & Luvhengo, Usapfa & Shoko, Rangarirai Roy, 2016. "Structural Analysis Of Minimum Wage Rates, Unemployment And Food Prices Of Farm Workers In South Africa: Co-Integration Approach," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 42(4).
    3. Lee, Chinkook, 2002. "The Impact Of Intermediate Input Price Changes On Food Prices: An Analysis Of "From-The-Ground-Up" Effects," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 20(1), pages 1-18.
    4. Michał Przybyliński & Artur Gorzałczyński, 2022. "Applying the input–output price model to identify inflation processes," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-11, December.
    5. James Buszkiewicz & Cathy House & Anju Aggarwal & Mark Long & Adam Drewnowski & Jennifer J. Otten, 2019. "The Impact of a City-Level Minimum Wage Policy on Supermarket Food Prices by Food Quality Metrics: A Two-Year Follow Up Study," IJERPH, MDPI, vol. 16(1), pages 1-14, January.
    6. Rembisz, Włodzimierz, 2021. "Determining the Acceptable Price Level for Agri-Food Products and the Choice of the Processor," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 319784, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    7. Heinrich Hock & Delia Furtado, 2009. "Female Work and Fertility in the United States: Effects of Low-Skilled Immigrant Labor," Working papers 2009-20, University of Connecticut, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lee, Chinkook, 2002. "The Impact Of Intermediate Input Price Changes On Food Prices: An Analysis Of "From-The-Ground-Up" Effects," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 20(1), pages 1-18.
    2. Jonathan Haskel & Holger Wolf, 2001. "The Law of One Price—A Case Study," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 545-558, December.
    3. Dvir, Eyal & Strasser, Georg, 2018. "Does marketing widen borders? Cross-country price dispersion in the European car market," Journal of International Economics, Elsevier, vol. 112(C), pages 134-149.
    4. Bo Tang, 2019. "Does the currency exposure affect stock returns of Chinese automobile firms?," Empirical Economics, Springer, vol. 57(1), pages 53-77, July.
    5. Bruce A. Blonigen & Stephen E. Haynes, 1999. "Antidumping Investigations and the Pass-Through of Exchange Rates and Antidumping Duties," NBER Working Papers 7378, National Bureau of Economic Research, Inc.
    6. Bruce A. Blonigen & Stephen E. Haynes, 2002. "Antidumping Investigations and the Pass-Through of Antidumping Duties and Exchange Rates," American Economic Review, American Economic Association, vol. 92(4), pages 1044-1061, September.
    7. Salvador Gil-Pareja & Simon Sosvilla-Rivero, 2007. "Price convergence in the European car market," Applied Economics, Taylor & Francis Journals, vol. 40(2), pages 241-250.
    8. Kólver Hernández & Asli Leblebicioglu, 2008. "A Regime Switching Analysis of Exchange Rate Pass-through," Working Papers 08-17, University of Delaware, Department of Economics.
    9. Strasser, Georg, 2013. "Exchange rate pass-through and credit constraints," Journal of Monetary Economics, Elsevier, vol. 60(1), pages 25-38.
    10. Kolver Hernandez & Aslı Leblebicioğlu, 2012. "A regime-switching analysis of pass-through," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(3), pages 523-552, September.
    11. Yamawaki, Hideki, 2002. "Price reactions to new competition: A study of US luxury car market, 1986-1997," International Journal of Industrial Organization, Elsevier, vol. 20(1), pages 19-39, January.
    12. Mallick, Sushanta & Marques, Helena, 2012. "Pricing to market with trade liberalization: The role of market heterogeneity and product differentiation in India’s exports," Journal of International Money and Finance, Elsevier, vol. 31(2), pages 310-336.
    13. Sara lemos, 2004. "The Effect of the Minimum Wage on Prices," Discussion Papers in Economics 04/7, Division of Economics, School of Business, University of Leicester.
    14. Jose Manuel Campa & Linda S. Goldberg, 2008. "Pass-Through of Exchange Rates to Consumption Prices: What Has Changed and Why?," NBER Chapters, in: International Financial Issues in the Pacific Rim: Global Imbalances, Financial Liberalization, and Exchange Rate Policy, pages 139-176, National Bureau of Economic Research, Inc.
    15. Mallick, Sushanta & Marques, Helena, 2010. "Data frequency and exchange rate pass-through: Evidence from India's exports," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 13-22, January.
    16. Mark Witte & Rachel Williams, 2014. "Duopolists’ Retail Pricing Behavior in Multiple Markets," Journal of Industry, Competition and Trade, Springer, vol. 14(1), pages 67-81, March.
    17. Anderl, Christina & Caporale, Guglielmo Maria, 2023. "Nonlinearities in the exchange rate pass-through: The role of inflation expectations," International Economics, Elsevier, vol. 173(C), pages 86-101.
    18. Patricia S. Pollard & Cletus C. Coughlin, 2006. "Passthrough Estimates and the Choice of an Exchange Rate Index," Review of International Economics, Wiley Blackwell, vol. 14(4), pages 535-553, September.
    19. Sara Lemos, 2004. "The Effects of the Minimum Wage on Prices in Brazil," Labor and Demography 0403011, University Library of Munich, Germany.
    20. Daniel Aaronson, 2001. "Price Pass-Through And The Minimum Wage," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 158-169, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifaamr:34561. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifamaea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.