Minimum Wage and the Average Wage in France: A Circular Relationship?
AbstractThis 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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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7502.
Length: 10 pages
Date of creation: Jul 2013
Date of revision:
Publication status: published in: Economics Bulletin, 2013, 33 (3), 1832-1839
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Other versions of this item:
- Gilbert Cette & Valérie Chouard & Gregory Verdugo, 2013. "Minimum wage and the average wage in France: a circular relationship?," Economics Bulletin, AccessEcon, vol. 33(3), pages 1832-1839.
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-05 (All new papers)
- NEP-HME-2013-08-05 (Heterodox Microeconomics)
- NEP-LAB-2013-08-05 (Labour Economics)
- NEP-LMA-2013-08-05 (Labor Markets - Supply, Demand, & Wages)
- NEP-LTV-2013-08-05 (Unemployment, Inequality & Poverty)
- NEP-MAC-2013-08-05 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Griliches, Zvi & Hausman, Jerry A., 1986.
"Errors in variables in panel data,"
Journal of Econometrics,
Elsevier, vol. 31(1), pages 93-118, February.
- 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.
- 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.
- Pierre Cahuc & Cette Gilbert & André Zylberberg, 2008. "Salaire minimum et bas revenus," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00638149, HAL.
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