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Minimum Wage and the Labor Market: What Can We Learn from the French Experience?

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Abstract

Since it was introduced in 1950, and even more since it was reformed in 1970, the statutory minimum wage has been playing a key role in the French labor market. It has very specific fixing mechanisms, and from the eighties, it has been one of the highest among the OECD countries - both in relative and absolute terms. After presenting the specific features of the minimum wage setting regime in France as well as the minimum wage policies implemented since the 1950s, we provide a comprehensive survey of existing empirical evidence on the impacts of the minimum wage on the French labor market. We use a meta-analysis to draw the lessons from the empirical studies on its effects on employment. We also survey the other potential effects, such as the impact on wage bargaining and other wages, on inequalities, on profit and prices, on working conditions

Suggested Citation

  • Jérôme Gautié & Patrice Laroche, 2018. "Minimum Wage and the Labor Market: What Can We Learn from the French Experience?," Documents de travail du Centre d'Economie de la Sorbonne 18019, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    • Handle: RePEc:mse:cesdoc:18019
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    File URL: ftp://mse.univ-paris1.fr/pub/mse/CES2018/18019.pdf
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    1. repec:ces:ifodic:v:16:y:2019:i:4:p:50000000004801 is not listed on IDEAS
    2. Phillippe Askenazy, 2019. "The Parameters of the French Minimum Hourly Wage," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 16(04), pages 09-13, January.

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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
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General

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