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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]

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  • 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]," Working Papers hal-05416302, HAL.
    • Handle: RePEc:hal:wpaper:hal-05416302
    Note: View the original document on HAL open archive server: https://insee.hal.science/hal-05416302v1
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