Does increasing the minimum wage affect prices?

Products at a Walgreens at Sunset & Vine in Hollywood. Photo by Fred Prouser, Reuters
Products at a Walgreens at Sunset & Vine in Hollywood. Photo by Fred Prouser, Reuters

Minimum wage increases can lead to consumers paying more money for products and services.

Notably, fast-food restaurants such as McDonald’s, Chipotle and Chick-Fil-A increased prices after California’s law increasing the minimum wage for their employees took effect.

Research from UC Berkeley’s Goldman School of Public Policy found that a “10% minimum wage hike translates into a .36% increase in the prices of grocery products.”

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