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The effects of the Chilean food policy package on aggregate employment and real wages

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  • Paraje, Guillermo
  • Colchero, Arantxa
  • Wlasiuk, Juan Marcos
  • Sota, Antonio Martner
  • Popkin, Barry M.

Abstract

In 2016 the Chilean government instituted the world’s most aggressive food policy package to prevent obesity and nutrition-related noncommunicable diseases. The package included comprehensive integrated policies on child marketing, school-related controls, and front-of-package warning labels for foods and beverages high in saturated fats, sugars, calories, and/or salt. This study assesses the impact of these policies on labor market outcomes (real wages and aggregate employment) after 18 months. Our results show that aggregate employment and average real wages were not affected by these regulations when compared to sectors unlikely to be affected by the policies. The study finds that sectors in which products are subject to labeling may have seen a decline in production but show no reduction in employment on aggregate. These results are consistent with evidence from research on the influence of other types of regulations (for example, how taxes on sugar-sweetened beverages affect employment) in other countries and cast doubts on the concerns that firms commonly raise about the negative impact of such regulations on labor market outcomes.

Suggested Citation

  • Paraje, Guillermo & Colchero, Arantxa & Wlasiuk, Juan Marcos & Sota, Antonio Martner & Popkin, Barry M., 2021. "The effects of the Chilean food policy package on aggregate employment and real wages," Food Policy, Elsevier, vol. 100(C).
    • Handle: RePEc:eee:jfpoli:v:100:y:2021:i:c:s0306919220302220
    DOI: 10.1016/j.foodpol.2020.102016
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    1. Samantha Marinello & Julien Leider & Lisa M Powell, 2021. "Employment impacts of the San Francisco sugar-sweetened beverage tax 2 years after implementation," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-16, June.
    2. Fernanda Mediano & Camila Fierro & Camila Corvalán & Marcela Reyes & Teresa Correa, 2023. "Framing a New Nutrition Policy: Changes on Key Stakeholder’s Discourses throughout the Implementation of the Chilean Food Labelling Law," IJERPH, MDPI, vol. 20(9), pages 1-15, May.
    3. Díaz, Juan-José & Sánchez, Alan & Diez-Canseco, Francisco & Jaime Miranda, J. & Popkin, Barry M., 2023. "Employment and wage effects of sugar-sweetened beverage taxes and front-of-package warning label regulations on the food and beverage industry: Evidence from Peru," Food Policy, Elsevier, vol. 115(C).

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