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La revalorisation automatique du SMIC
[Automatic indexation rules of the French minimum wage (SMIC)]

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Author Info

  • Cette, Gilbert
  • Etienne, Wasmer

Abstract

Contrary to most European countries, indexation rules of the French minimum wage are very precise. However, three possible rules are consistent with the texts, which diverge in particular in periods of deflation or of negative growth of real wages. The alternative interpretations can have a large impact on the dynamics of the minimum wage, on the dynamics of real wages compared to productivity and on the bottom of the wage distribution. This note examine the three rules and recommand the optimal one, which appear to be most robust to alternative scenarios of inflation and deflation.

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File URL: http://mpra.ub.uni-muenchen.de/18855/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18855.

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Date of creation: 24 Nov 2009
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Handle: RePEc:pra:mprapa:18855

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Related research

Keywords: minimum wage; indexation; inflation; deflation; real wage growth;

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References

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  1. Guillaume Horny & Hervé Le Bihan, 2010. "Volatilité macroéconomique et règle d'indexation du SMIC," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 161-168.
  2. Yann Algan & Pierre Cahuc & Philippe Aghion, 2008. "Can Policy influence culture? Minimum Wage and the Quality of Labor relations," 2008 Meeting Papers 574, Society for Economic Dynamics.
  3. repec:hal:cesptp:halshs-00638149 is not listed on IDEAS
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. règles de revalorisation du smic
    by Etienne Wasmer in Blog d'un économiste du travail on 2009-12-08 10:12:00
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Cited by:
  1. R. Aeberhardt & P. Givord & C. Marbot, 2012. "Spillover Effect of the Minimum Wage in France: An Unconditional Quantile Regression Approach," Documents de Travail de la DESE - Working Papers of the DESE g2012-07, Institut National de la Statistique et des Etudes Economiques, DESE.
  2. repec:spo:wpecon:info:hdl:2441/53r60a8s3kup1vc9je5h30d2n is not listed on IDEAS
  3. Cette, Gilbert & Chouard, Valérie & Verdugo, Gregory, 2013. "Minimum Wage and the Average Wage in France: A Circular Relationship?," IZA Discussion Papers 7502, Institute for the Study of Labor (IZA).
  4. Pauline Givord, 2011. "Essay on Four Issues in Public Policy Evaluation," Sciences Po publications info:hdl:2441/53r60a8s3ku, Sciences Po.

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