The University of Massachusetts Amherst
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UMass Economics

Arin Dube comments on the 25-50% increase in fast-food prices the industry insists would have to be borne by the consumer if fast-food workers’ wages increased to $15/hour

A columnist writing about the effort to boost wages for fast-food workers to $15 per hour cites research done by Arindrajit Dube, economics, that says an increase of that magnitude would lead to prices rising by about 20 percent. Industry spokesmen say boosting pay to that level would increase prices by between 25 percent and 50 percent. The columnist argues that keeping the price of fast food low should not be a higher priority than paying workers a liveable wage. (Democrat and Chronicle [Rochester, N.Y.], 12/6/14)