Dear colleagues,
The Department of Economics cordially invites you to the WU Economic Research Seminar (Department Seminar) on
Wednesday, May 15, with
Štěpán Jurajda
(Charles University Prague)
on
"How Low Are U.S. Wage Rates? A McWage Comparison"
Abstract:
Thanks to the standardized work protocol and technology of McDonald’s restaurants, the hourly wage rate of basic crew McDonald’s workers offers consistent, easy-to-interpret, and up-to-date wage comparisons for workers supplying identical
skill input under uniform hedonic job conditions. The McWage rate captures variation in low-skill labor costs across locations, while the Big Macs (earned) Per Hour (BMPH) index measures the purchasing power of labor income. We compare 2016, 2017, and 2018
McWages across more than 10 thousand US restaurants covering counties with 97% of the US population. The 5/95 percentile range of BMPH across US counties is 1.6/2.3-2.5, suggesting only limited labor market integration. There was under 1% annual growth in
BMPH and 4% annual growth in nominal McWages between 2016 and 2018. We also study the effects of US state and local minimum wages on entry and exit rates of McDonald’s restaurants and the extent of price pass through.
Time and place: Wednesday,
May 15, 4.30
– 6.00
p.m., Campus WU, Welthandelsplatz 1, 1020 Vienna, building D4, entrance A, 2nd floor,
Department meeting room 2.008.
With best regards,
Harald Oberhofer
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Univ.-Prof. Dr. Harald Oberhofer
Institute for International Economics
WU Vienna University of Economics and Business
Phone: +43/1/31336-4984
Fax: +43/1/31336-4984
Email:
harald.oberhofer@wu.ac.at
Webpage:
https://www.wu.ac.at/ie/mitarbeiter/harald-oberhofer/
Austrian Institute of Economic Research (WIFO)
Phone: +43/1/7982601-468
Fax: +43/1/7989386
Email:
harald.oberhofer@wifo.ac.at
Webpage:
http://www.wifo.ac.at/harald_oberhofer