RESTAURANT PRICES AND THE MINIMUM WAGE

Denis Fougere, Erwan Gautier and Hervé Le Bihan

No 44084, Working Papers from American Association of Wine Economists

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 data set of individual price quotes used to calculate the Consumer Price Index in France. We find a positive and signifi cant 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: Demand and Price Analysis; Industrial Organization (search for similar items in EconPapers)
Pages: 52
Date: 2008-10
New Economics Papers: this item is included in nep-bec, nep-cba, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://ageconsearch.umn.edu/record/44084/files/AAWE_WP23.pdf (application/pdf)

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:ags:aawewp:44084

DOI: 10.22004/ag.econ.44084

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