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Understanding Wage Floor Setting in Industry-Level Agreements: Evidence from France
[La fixation des salaires de branche dans les accordsde branche en France]

Author

Listed:
  • Denis Fougère

    (OSC - Observatoire sociologique du changement (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po, CEPR - Center for Economic Policy Research, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics)

  • Erwan Gautier

    (Banque de France, Nantes Univ - Nantes Université)

  • Sébastien Roux

    (INSEE - Institut national de la statistique et des études économiques (INSEE))

Abstract

This paper examines empirically how industry-level wage floors are set in French industry- level wage agreements and how the national minimum wage (NMW) interacts with industry- level wage bargaining. For this, we use a unique dataset containing about 50,000 occupation-specific wage floors in 365 French industries over the period 2007-2015. We find that the NMW has a significant impact on the seasonality and on the timing of the wage bargaining process. Inflation, past sectoral wage increases and real NMW increases are the main drivers of wage floor adjustments; elasticities of wage floors with respect to these macro variables are 0.6, 0.4 and 0.2 respectively. Wage floor elasticities to inflation and to the NMW both decrease along the wage floor distribution but are still positive for all levels of wage floors.

Suggested Citation

  • Denis Fougère & Erwan Gautier & Sébastien Roux, 2017. "Understanding Wage Floor Setting in Industry-Level Agreements: Evidence from France [La fixation des salaires de branche dans les accordsde branche en France]," Sciences Po Economics Publications (main) hal-05416302, HAL.
    • Handle: RePEc:hal:spmain:hal-05416302
    Note: View the original document on HAL open archive server: https://insee.hal.science/hal-05416302v1
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    Cited by:

    1. is not listed on IDEAS
    2. Elise Coudin & Sophie Maillard & Maxime To, 2018. "Family, firms and the gender wage gap in France," IFS Working Papers W18/01, Institute for Fiscal Studies.
    3. Guimaraes, Paulo & Martins, Fernando & Portugal, Pedro, 2017. "Upward Nominal Wage Rigidity," IZA Discussion Papers 10510, IZA Network @ LISER.
    4. Giannakopoulos, Nicholas & Laliotis, Ioannis, 2017. "Decentralized Bargaining and the Greek Labour Relations Reform (Law 4024/2011)," MPRA Paper 76513, University Library of Munich, Germany.

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    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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