Here’s How Much a Big Mac Would Cost Under a $15 Per Hour Minimum Wage
As New York gets ready to implement a $15 minimum wage for fast food workers, there has been a lot of discussion about the economic impact of such a drastic change. Since a similar law was implemented in Seattle, unemployment has fallen, but restaurants have been closing left and right. But what about the tangible impact on the cost of our food?
According to a recent study from researchers at Purdue University, if the minimum wage were increased to $15 per hour, that would mean that a Big Mac, on average, would cost 17 cents more, with a 4.3 percent jump from $3.99 to $4.16.
"People often hypothesize that if you raise pay and offer benefits, turnover will go down,” said Richard Ghiselli, professor and researcher at Purdue University. “I don't think we answered the question of whether that reduces turnover, but the study showed that if you raise pay and offer health insurance, prices will go up."
The study also found that extending health care benefits to fast food workers would have minimal impact on menu prices.