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Restaurant Prices And The Minimum Wage

  • Fougere, Denis
  • Gautier, Erwan
  • Le Bihan, Herve

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.

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File URL: http://purl.umn.edu/44084
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Paper provided by American Association of Wine Economists in its series Working Papers with number 44084.

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Date of creation: Oct 2008
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Handle: RePEc:ags:aawewp:44084
Contact details of provider: Web page: http://www.wine-economics.org

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