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Spillover Effect of the Minimum Wage in France: An Unconditional Quantile Regression Approach

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  • R. AEBERHARDT

    (Dares-Crest)

  • P. GIVORD

    (Insee)

  • C. MARBOT

    (Insee)

Abstract

This study evaluates the impact of the minimum wage on the earnings distribution in France, using an unconditional quantile regression method proposed by Firpo, Fortin, and Lemieux (2009). To address the endogeneity issue due to the specific French revaluation process of the minimum wage, we use a natural experiment. As several minimum wage levels coexisted because of different schedules in the French 35-hour week" application, they were forced to converge to one single level between 2003 and 2005. We find significant effects of the minimum wage on the earnings distribution of male and female employees up to the seventh decile.

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Bibliographic Info

Paper provided by Institut National de la Statistique et des Etudes Economiques, DESE in its series Documents de Travail de la DESE - Working Papers of the DESE with number g2012-07.

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Date of creation: 2012
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Handle: RePEc:crs:wpdeee:g2012-07

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Keywords: Minimum wage; earnings distribution; unconditional quantile regressions;

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References

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  1. Richard Dickens & Stephen Machin & Alan Manning, 1994. "Estimating the Effect of Minimum Wages on Employment from the Distribution of Wages: A Critical View," CEP Discussion Papers dp0203, Centre for Economic Performance, LSE.
  2. Erwan Gautier & Denis Fougère & Sanvi Avouyi-Dovi, 2009. "Les négociations salariales en France : une analyse à partir de données d’entreprises (1994 ‑ 2005)," Économie et Statistique, Programme National Persée, vol. 426(1), pages 29-65.
  3. Armin Falk & Ernst Fehr & Christian Zehnder, . "The Behavioral Effects of Minimum Wages," IEW - Working Papers 247, Institute for Empirical Research in Economics - University of Zurich.
  4. 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.
  5. Dickens, Richard & Alan Manning, 2003. "The Impact of the National Minimum Wage on the Wage Distribution in a Low-Wage Sector," Royal Economic Society Annual Conference 2003 60, Royal Economic Society.
  6. Gilbert Cette & Grégory Verdugo & Valérie Chouard, 2011. "Les effets des hausses du Smic sur le salaire moyen," Économie et Statistique, Programme National Persée, vol. 448(1), pages 3-28.
  7. Chen, Jiawei & Shum, Matthew, 2010. "Estimating a tournament model of intra-firm wage differentials," Journal of Econometrics, Elsevier, vol. 155(1), pages 39-55, March.
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Cited by:
  1. 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).
  2. Éric Heyer & Mathieu Plane, 2012. "Quelles conséquences économiques du coup de pouce au Smic ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0, pages 97-102.
  3. repec:spo:wpecon:info:hdl:2441/53r60a8s3kup1vc9kct3801ik is not listed on IDEAS

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