Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35646
Authors: 
Fougère, Denis
Gautier, Erwan
Le Bihan, Hervé
Year of Publication: 
2009
Series/Report no.: 
IZA discussion papers 4070
Abstract: 
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.
Subjects: 
Price stickiness
minimum wage
inflation
restaurant prices
JEL: 
E31
D43
L11
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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