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

  • Gilbert Cette

    ()

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

  • Valérie Chouard

    ()

    (Banque de France)

  • Gregory Verdugo

    ()

    (Banque de France)

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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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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