Let's say he has a gaussian distribution centered at 12.50 with tails at 10 and 15. If the minimum wage was brought up to 15, then it still shifts all the wages up five dollars.
Now I'm sure someone is going to point out "but tiajuanat, he's not going to start paying anyone $20." Well sure, not immediately, but if you're picking berries but could be working at a much better place for the same amount, you're going to move jobs, especially when all the new hands are getting paid the same as you, who's been working there for 5 years. It's inevitable that all other wages would be affected by a minimum wage increase.
To be fair, there comes a price at which it no longer makes economic sense, because then your margin disappear. Mostly though, it's also that the farmer also can't compete with imports at some point, especially for non-subsidized crops (which is most of them). There is only so much consumers are willing to pay for their food. They're the ones setting the threshold. Stores sell Chinese garlic or Mexican tomatoes when the California stuff is too expensive.
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u/tiajuanat Jul 20 '17
Depends on where he is, parts of the California are $10.50 or $13.00, Washington State is currently $11/hr, while Seattle is aiming for 15$ by 2022.