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La revalorisation automatique du SMIC

  • Gilbert Cette
  • Étienne Wasmer

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 examines the three rules and recommends the optimal one, which appear to be most robust to alternative scenarios of inflation and deflation. JEL classification codes: J3, J5, J50.

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Article provided by Presses de Sciences-Po in its journal Revue de l'OFCE.

Volume (Year): n° 112 (2010)
Issue (Month): 1 ()
Pages: 139-159

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Handle: RePEc:cai:reofsp:reof_112_0139
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  1. Aghion, Philippe & Algan, Yann & Cahuc, Pierre, 2008. "Can Policy Influence Culture? Minimum Wage and the Quality of Labor Relations," CEPREMAP Working Papers (Docweb) 0801, CEPREMAP.
  2. 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.
  3. Pierre Cahuc & Cette Gilbert & André Zylberberg, 2008. "Salaire minimum et bas revenus," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00638149, HAL.
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