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

58 Pages Posted: 18 Apr 2016

See all articles by Denis Fougère

Denis Fougère

National Center for Scientific Research (CNRS); CNRS and SCIENCES PO PARIS; IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Erwan Gautier

Banque de France - Centre de Recherche

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: April 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 dataset 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: collective bargaining, minimum wage, wages

JEL Classification: E24, J31, J51

Suggested Citation

Fougere, Denis and Fougere, Denis and Gautier, Erwan and Roux, Sébastien, The Impact of the National Minimum Wage on Industry-Level Wage Bargaining in France (April 2016). Available at SSRN: https://ssrn.com/abstract=2766563

Denis Fougere (Contact Author)

CNRS and SCIENCES PO PARIS ( email )

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National Center for Scientific Research (CNRS)

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Erwan Gautier

Banque de France - Centre de Recherche ( email )

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France

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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