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 --- 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<mailto: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<mailto:harald.oberhofer@wifo.ac.at> Webpage: http://www.wifo.ac.at/harald_oberhofer