Price Pass-Through And The Minimum Wage
This paper tests a textbook consequence of competitive markets: that an industry-wide increase in the price of labor is passed on to consumers through an increase in prices. Using several data sources on restaurant prices, I explore the price impact of minimum-wage hikes in Canada and the United States. Particular attention is paid to the timing of these price responses to gauge the "stickiness" of minimum-wage cost shocks. I find that restaurant prices generally rise with changes in the wage bill and that this response is concentrated in the quarter surrounding the month during which the legislation is enacted. © 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
Year of publication: |
2001
|
---|---|
Authors: | Aaronson, Daniel |
Published in: |
The Review of Economics and Statistics. - MIT Press. - Vol. 83.2001, 1, p. 158-169
|
Publisher: |
MIT Press |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
The spending and debt response to minimum wage hikes
Aaronson, Daniel, (2008)
-
The impact of Rosenwald Schools on black achievement
Aaronson, Daniel, (2009)
-
Fertility transitions along the extensive and intensive margins
Aaronson, Daniel, (2011)
- More ...