The Impact of Minimum Wage Increases on Food and Kindred Products Prices: An Analysis of Price Pass-Through

by Chinkook Lee and Brian O'Roark

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.

Keywords: minimum wage, input-output analysis, food and kindred products industries, eating and drinking places

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