The Pass-Through of Minimum Wages into US Retail Prices: Evidence from Supermarket Scanner Data

@article{Renkin2020ThePO,
  title={The Pass-Through of Minimum Wages into US Retail Prices: Evidence from Supermarket Scanner Data},
  author={Tobias Renkin and Claire Montialoux and Michael Siegenthaler},
  journal={Review of Economics and Statistics},
  year={2020},
  pages={1-99}
}
This paper estimates the pass-through of minimum wage increases into the prices of US grocery and drug stores. We use high-frequency scanner data and leverage a large number of state-level increases in minimum wages between 2001 and 2012. We find that a 10% minimum wage hike translates into a 0.36% increase in the prices of grocery products. This magnitude is consistent with a full pass-through of cost increases into consumer prices. We show that price adjustments occur mostly in the three… 
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