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.
Yeah, but note that if the supermarket pays its employees 25% more, that does not mean that the costs for the supermarket rise by 25% overall, since wages are only a small part of total expenses. The cost of products would rise way less than 25%.
Do you also have a paper about the wage increase in things where the price of the employees is a bigger part of the total costs (restaurants, accountants, notaries, etc)?
In a restaurant, the costs of the wages (plus social security and pension payments) are often as much as the costs of the food itself.
Science and reality disagree with your feelings. Do not parrot the disingenuous spam from the oligarchs.
Yeah, but note that if the supermarket pays its employees 25% more, that does not mean that the costs for the supermarket rise by 25% overall, since wages are only a small part of total expenses. The cost of products would rise way less than 25%.
Holy crabapples! Thank you for that link!
Do you also have a paper about the wage increase in things where the price of the employees is a bigger part of the total costs (restaurants, accountants, notaries, etc)?
In a restaurant, the costs of the wages (plus social security and pension payments) are often as much as the costs of the food itself.