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Direct linkAaronson, Daniel; French, Eric; MacDonald, James – Journal of Human Resources, 2008
Using store-level and aggregated Consumer Price Index data, we show that restaurant prices rise in response to minimum wage increases under several sources of identifying variation. We introduce a general model of employment determination that implies minimum wage hikes cause prices to rise in competitive labor markets but potentially fall in…
Descriptors: Minimum Wage, Labor Market, Labor, Dining Facilities
