Restaurant Prices and the Minimum Wage

Denis Fougere, Erwan Gautier and Hervé Le Bihan

Abstract: We examine the effect of the minimum wage on restaurant prices. For that purpose, we estimate a price rigidity model by exploiting a unique dataset of individual price quotes used to calculate the Consumer Price Index in France. We find a positive and significant impact of the minimum wage on prices. We obtain that the effect of the minimum wage on prices is very protracted. The aggregate impact estimated with our model takes more than a year to fully pass through to retail prices.

Keywords: Price stickiness; minimum wage; inflation, restaurant prices. (search for similar items in EconPapers)
JEL-codes: D43 E31 L11 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2008
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Citations: View citations in EconPapers (2)

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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 (2009)
Working Paper: RESTAURANT PRICES AND THE MINIMUM WAGE (2008)
Working Paper: Restaurant Prices and the Minimum Wage (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:216

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