Volatilité macroéconomique et règle d'indexation du SMIC
AbstractThe specific rule governing the increases in the French minimum wage (SMIC) can lead to a change in the minimum wage which is larger than the change of the workers hourly base wage (SHBO), as did happen in 1985, 1987 and 2008. In this note we show that the probability of such an event depends on both the variance of the inflation rate and that of the real wage growth rate. When macroeconomic volatility is fairly low, as was observed from 1996 to 2007, we estimate this probability to 6%. The average increase of the SMIC is larger than the average growth of the SHBO only in a much more unstable setting, characterized by fluctuations in inflation and real wages of magnitudes five times greater. JEL Classification codes: E24, E31, J38.
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Bibliographic InfoArticle provided by Presses de Sciences-Po in its journal Revue de l'OFCE.
Volume (Year): n° 112 (2010)
Issue (Month): 1 ()
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Web page: http://www.cairn.info/revue-de-l-ofce.htm
inflation volatility; minimum wage; workers hourly base wage; wage indexation;
Find related papers by JEL classification:
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
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- Gilbert Cette & Étienne Wasmer, 2010.
"La revalorisation automatique du SMIC,"
Revue de l'OFCE,
Presses de Sciences-Po, vol. 0(1), pages 139-159.
- Cette, Gilbert & Etienne, Wasmer, 2009.
"La revalorisation automatique du SMIC
[Automatic indexation rules of the French minimum wage (SMIC)]," MPRA Paper 18855, University Library of Munich, Germany.
- Cette, Gilbert & Etienne, Wasmer, 2009. "La revalorisation automatique du SMIC
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