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

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  • 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
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    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.
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    Cited by:

    1. 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).
    2. 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.
    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. Dale Belman & Paul Wolfson & Kritkorn Nawakitphaitoon, 2015. "Who Is Affected by the Minimum Wage?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(4), pages 582-621, October.
    6. 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.
    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.
    8. 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).

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