Empirical analysis shows minimum wage policies improve wages in food manufacturing, indicating varied employment effects among subpopulations.
This study examines the impact of minimum wage policies on low‐wage food processing workers. The empirical analysis assesses how minimum wage policies affect hourly wages, working hours and weeks, and the likelihood of employment. The findings indicate significant wage increases but no adverse employment effects in the overall food‐manufacturing industry. However, subsector and subpopulation analyses reveal significant heterogeneity, with wage gains concentrated in certain subsectors and positive employment effects for males and natives but negative effects for immigrants. These findings emphasize the need to consider industry specific and demographic characteristics when evaluating the impact of minimum wage policies.
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Dahye Kim (2025) studied this question.
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