The Impact of the National Minimum Wage on Industry-Level Wage Bargaining in France

61 Pages Posted: 4 Apr 2016

See all articles by Erwan Gautier

Erwan Gautier

Banque de France - Centre de Recherche

Denis Fougère

National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE); National Center for Scientific Research (CNRS); IZA Institute of Labor Economics

Sébastien Roux

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST)

Multiple version iconThere are 2 versions of this paper

Date Written: March , 2016

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 data set containing about 48,000 occupation-specific wage floors, in more than 340 French industries over the period 2006-2014. 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, 0.3 and 0.25 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.

Keywords: minimum wage, collective bargaining, wages

JEL Classification: J31, J51, E24

Suggested Citation

Gautier, Erwan and Fougere, Denis and Roux, Sébastien, The Impact of the National Minimum Wage on Industry-Level Wage Bargaining in France (March , 2016). Banque de France Working Paper No. 587, Available at SSRN: https://ssrn.com/abstract=2758532 or http://dx.doi.org/10.2139/ssrn.2758532

Erwan Gautier (Contact Author)

Banque de France - Centre de Recherche ( email )

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Denis Fougere

National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE) ( email )

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National Center for Scientific Research (CNRS)

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IZA Institute of Labor Economics

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Sébastien Roux

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST) ( email )

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Malakoff Cedex, 1 92245
France

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