Restaurant Prices and the Minimum Wage

Fougère, Denis, , and Erwan Gautier
Authors registered in the RePEc Author Service: Denis Fougere and Hervé LE BIHAN

No 6892, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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: inflation; Minimum wage; Price stickiness; Restaurant prices (search for similar items in EconPapers)
JEL-codes: D43 E31 L11 (search for similar items in EconPapers)
Date: 2008-06
New Economics Papers: this item is included in nep-cba, nep-mac, nep-mkt and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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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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