Restaurant Prices and the Minimum Wage

Denis Fougere, Erwan Gautier and Hervé Le Bihan

No 2009-13, Working Papers from Center for Research in Economics and Statistics

Abstract: In this paper, we examine the e¤ect of the minimum wage on restaurant prices.We contributeboth to the study of economic impact of the minimum wage and to the study of microeconomicpatterns of price stickiness. For this purpose, we use a unique dataset of individual price quotescollected to calculate the Consumer Price Index in France and we estimate a price rigidity modelbased on a ?exible (S; s) rule. We ?nd a positive and signi?cant impact of the minimum wageon prices. The e¤ect of the minimum wage on prices is however very protracted. A change inthe minimum wage takes more than a year to fully pass through to retail prices.

Pages: 55
Date: 2009
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Restaurant Prices and the Minimum Wage (2010)
Journal Article: Restaurant Prices and the Minimum Wage (2010)
Working Paper: Restaurant Prices and the Minimum Wage (2009)
Working Paper: RESTAURANT PRICES AND THE MINIMUM WAGE (2008)
Working Paper: Restaurant Prices and the Minimum Wage (2008)
Working Paper: Restaurant Prices and the Minimum Wage (2008)
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