Abstract
This paper evaluates the impact of an increase in the federal or state minimum wage on the egg industry, where labor is a key input. This analysis uses an for Iowa, a key egg-producing state. When spread across the industry, the total negative effects of the increased minimum wage do not appear to be economically significant. This is due largely to the Iowa egg industry’s current equilibrium wage of $13.50 an hour. Thus, a $15.00 minimum wage adds only $1.50; however, to stay competitive, egg industry employers likely would increase their wage above $15.00. Despite these seemingly small effects, egg producers may struggle in the short run to respond to immediate labor expenses should Iowa or the United States not phase in its minimum wage over the course of several years.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 357-374 |
| Number of pages | 18 |
| Journal | Journal of Agricultural and Applied Economics |
| Volume | 54 |
| Issue number | 2 |
| DOIs | |
| State | Published - May 10 2022 |
Bibliographical note
Funding Information:The findings and conclusions of this paper have not been formally disseminated by the U.S. Department of Agriculture and should not be construed to represent any agency determination or policy. This research was partially supported by the intramural research program of the U.S. Department of Agriculture, Economic Research Service.
Publisher Copyright:
© The Author(s), 2022. Published by Cambridge University Press on behalf of the Southern Agricultural Economics Association
Keywords
- Agriculture
- Eggs
- Equilibrium displacement models
- J38
- J43
- Minimum wage
- Q12
- Q13
- labor
