Price pass-through and the minimum wage

• 成果类型: Article
• 署名作者: Aaronson, D
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Chicago
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/003465301750160126
• 发表日期: 2001-02
• 页码: 158-169
• 关键词: imperfect competition; taxation; oligopoly; BEHAVIOR; state

摘要

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 the-se 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.