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: Price stickiness; minimum wage; inflation; restaurant prices; Demand and Price Analysis; Industrial Organization (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cba, nep-lab and nep-mac
Date: 2008-10
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Related works:
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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