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Minimum wage and the average wage in France: a circular relationship?

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Author Info

  • Gilbert Cette

    ()
    (Banque de France and Université de la Méditerranée (DEFI))

  • Valérie Chouard

    ()
    (Banque de France)

  • Gregory Verdugo

    ()
    (Banque de France)

Abstract

This paper investigates whether increases in the minimum wage in France have the same impact on the average wage when intended to preserve the purchasing power of the minimum wage as when intended to raise it. We find that the impact of the minimum wage on the average wage is strong, but differs depending on the indexation factor. We also find some empirical evidence of circularity between the average wage and the minimum wage.

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File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I3-P171.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 33 (2013)
Issue (Month): 3 ()
Pages: 1832-1839

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Handle: RePEc:ebl:ecbull:eb-13-00422

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Keywords: Minimum Wage; Average Wage; France;

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References

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  1. Gilbert Cette & Étienne Wasmer, 2010. "La revalorisation automatique du SMIC," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 139-159.
  2. Patrick Sevestre & Pierre Blanchard, 1989. "L'indexation des salaires : quelle rupture en 1982 ?," Économie et Prévision, Programme National Persée, vol. 87(1), pages 67-74.
  3. Griliches, Zvi & Hausman, Jerry A., 1986. "Errors in variables in panel data," Journal of Econometrics, Elsevier, vol. 31(1), pages 93-118, February.
  4. repec:hal:cesptp:halshs-00638149 is not listed on IDEAS
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Cited by:
  1. Verdugo, Gregory, 2014. "The Great Compression of the French Wage Structure, 1969-2008," IZA Discussion Papers 8088, Institute for the Study of Labor (IZA).
  2. Arni, Patrick & Eichhorst, Werner & Pestel, Nico & Spermann, Alexander & Zimmermann, Klaus F., 2014. "Kein Mindestlohn ohne unabhängige wissenschaftliche Evaluation," IZA Standpunkte 65, Institute for the Study of Labor (IZA).

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