Impacts of MinimumWage Increases in the U.S. Retail Sector: Full-Time versus Part-Time Employment

State and federal minimum wage hikes are likely to impact the retail industry, including grocery stores, which employs a large number of less-well-compensated part-time workers. Despite its relevance, it is not clear whether minimum wage increases affect full- and part-time retail employees differen...

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Bibliographic Details
Published inJournal of agricultural and resource economics Vol. 47; no. 2; pp. 324 - 341
Main Authors Yonezawa, Koichi, Gómez, Miguel I, McLaughlin, Edward W
Format Journal Article
LanguageEnglish
Published Logan Western Agricultural Economics Association 01.05.2022
Subjects
Consumption
Costs
Economic development
Economic growth
Employees
Employment
Food consumption
Food safety
Grocery stores
Human capital
Human resources
Labor
Labor force
Minimum wage
Part time employment
Regional development
Retail stores
Retailing
Retailing industry
Wage rates
Wages & salaries
United States > US
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Summary:State and federal minimum wage hikes are likely to impact the retail industry, including grocery stores, which employs a large number of less-well-compensated part-time workers. Despite its relevance, it is not clear whether minimum wage increases affect full- and part-time retail employees differently. We use state-level monthly data from the Current Population Survey (CPS) to show that minimum wage hikes lead to rising part-time wages but not to declining part-time employment. Instead, retailers reduce their full-time employment and the hours worked by full-time workers in order to stay within a labor budget and continue serving their customers.
ISSN:1068-5502
2327-8285
DOI:10.22004/ag.econ.310532