Yonezawa, Koichi

By: Yonezawa, Koichi ; G—mez, Miguel I. ; McLaughlin, Edward W.
State and federal minimum wage hikes are likely to impact the retail industry, including grocery stores, which employs a large number of less-well-compensated part-time workers. Despite its relevance, it is not clear whether minimum wage increases affect full- and part-time retail employees differently. We use state-level monthly data from the Current Population Survey (CPS) to show that minimum wage hikes lead to rising part-time wages but not to declining part-time employment. Instead, retailers reduce their full-time employment and the hours worked by full-time workers in order to stay within a labor budget and continue serving their customers.
By: Yonezawa, Koichi; Richards, Timothy J.
When choosing among retail store formats, consumers face two alternatives: everyday-low-price (EDLP) stores that offer lower mean prices, with less variation over time, or promotion-based (HILO) stores that offer higher mean prices but more variation over time. In this study, we investigate a relationship between consumers’ risk preferences and their store-choice decisions. We use data from a two-stage, incentive-compatible experiment to measure subjects’ risk preferences and to examine how their attitudes toward risk influence their preferences for store price format.We find that retailers’ pricing strategies allow consumers with different risk attitudes to choose a particular store price format.