National Minimum Wage Day of Action (Photo/Progress Illinois)

A new Purdue University study is attempting to estimate the cost of proposed increases to the minimum wage.

Researchers calculated the cost to consumers if wages in the fast food industry were increased to $15 per hour. The federal minimum wage is currently $7.20 per hour.

“If we took wages up to $15, all other things the same, it would have a 4.4 percent effect on price,” said Richard Ghiselli, professor and head of the School of Hospitality and Tourism Management at Purdue.

This would translate to $1 cheeseburgers increasing to a cost of $1.05 and $5 foot long sandwiches would cost more along the lines of $5.22.

However, ‘all the other things’ Ghiselli mentioned would likely not stay the same, in light of higher prices. For example, some restaurants would likely see a drop in customers.

“Restaurants are very competitive,” said Ghiselli. “Can they stay alive in that type of environment?”

Tony Flora with the AFL-CIO has pointed out at multiple minimum wage protests that there is already a price being paid by consumers for current fast food pay practices.

“A study done by the University of California shows that 45 percent of fast food workers receive public assistance because the wage is so low,” said Flora. “Meaning those are public subsidies to low wage employers.”

Flora argues that the higher pay gained through an increase in minimum wage would mean fast food workers would no longer qualify for government assistance.

Source: WNDU