Restaurant prices and the minimum wage

Arbeitspapier

We examine the effect of the minimum wage on restaurant prices. We contribute to both the study of economic impact of the minimum wage and to the micro patterns of price stickiness. For that purpose, we use a unique dataset of individual price quotes collected to calculate the Consumer Price Index in France and we estimate a price rigidity model based on a flexible (S; s) rule. We find a positive and significant impact of the minimum wage on prices. The effect of the minimum wage on prices is however very protracted. The aggregate impact estimated with our model takes more than a year to fully pass through to retail prices.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 4070

Classification and Topics

• Classification: Wirtschaft ; Price Level; Inflation; Deflation ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Production, Pricing, and Market Structure; Size Distribution of Firms
• Subject: Price stickiness ; minimum wage ; inflation ; restaurant prices ; Lohnpolitik ; Mindestlohn ; Preisniveau ; Gastronomie ; Frankreich

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fougère, Denis ; Gautier, Erwan ; Le Bihan, Hervé
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/35646
• URN: urn:nbn:de:101:1-2009033033
• Last update: 10.03.2025, 11:45 AM CET