Minimum Wage Impacts on Labor Market Outcomes in the <scp>U.S.</scp> Food‐Manufacturing Industry

ABSTRACT 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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Publication Details

Journal
Applied Economic Perspectives and Policy
Published
2025-08-20
DOI
https://doi.org/10.1002/aepp.70018
Primary Topic
Labor market dynamics and wage inequality
Type
article
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article

Minimum Wage Impacts on Labor Market Outcomes in the U.S. Food‐Manufacturing Industry

Dahye Kim
Applied Economic Perspectives and Policy
Labor market dynamics and wage inequality
article

Minimum Wage Impacts on Labor Market Outcomes in the U.S. Food‐Manufacturing Industry

Dahye Kim
article en

Abstract

ABSTRACT 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.

Applied Economic Perspectives and PolicyVol. 47(5)
Michigan State University (US)
Openalex Percentile: Top 71%
Labor market dynamics and wage inequality
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