Restaurant Prices and the Minimum Wage

Denis Fougere (), Erwan Gautier () and Hervé LE BIHAN ()

Documents de Travail from Banque de France

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: E31 D43 L11 (search for similar items in EconPapers)
Date: 2008
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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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Persistent link: http://EconPapers.repec.org/RePEc:bfr:banfra:216

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