TY  - RPRT
        AU  - Fougère, Denis
AU  - Gautier, Erwan
AU  - Bihan, Hervé Le
        TI  - Restaurant Prices and the Minimum Wage
        PY  - 2009/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4070
        UR  - https://www.iza.org/publications/dp4070
        AB  - 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.

        KW  - restaurant prices
KW  - price stickiness
KW  - minimum wage
KW  - inflation
        ER  -