Download This PaperMinimum Wage and the Average Wage in France: A Circular Relationship?
10 Pages Posted: 23 Aug 2013
Abstract
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.
Keywords: average wage, minimum wage, France
JEL Classification: E24, J31, J58
Suggested Citation: Suggested Citation
Cette, Gilbert and Chouard, Valérie and Verdugo, Gregory, Minimum Wage and the Average Wage in France: A Circular Relationship?. IZA Discussion Paper No. 7502, Available at SSRN: https://ssrn.com/abstract=2314796 or http://dx.doi.org/10.2139/ssrn.2314796
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