2019
DOI: 10.2139/ssrn.3394841
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Do Minimum Wages Make Wages More Rigid? Evidence from French Micro Data

Abstract: How do minimum wages (MW) shape the aggregate wage dynamics when wage adjustment is lumpy? In this paper, we document new empirical findings on the effect of MW on wage rigidity using quarterly micro wage data matched with sectoral bargained MW. We estimate a micro empirical model of wage rigidity taking into account minimum wage dynamics and we use a simulation method to investigate implications of lumpy micro wage adjustment for the aggregate wage dynamics. Our main findings are the following. Both national … Show more

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Cited by 2 publications
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“…Gautier, Roux, and Suarez-Castillo (2019) document larger spillover e¤ects of minimum wage increases on wages close to the minimum but a rather homogeneous e¤ect of indexation along the wage distribution in France. We focus instead on the labor market conditions that shape negotiated wage changes at contract renewal and …nd stronger impacts on wages close to the minimum but less so further up the wage distribution.…”
mentioning
confidence: 84%
“…Gautier, Roux, and Suarez-Castillo (2019) document larger spillover e¤ects of minimum wage increases on wages close to the minimum but a rather homogeneous e¤ect of indexation along the wage distribution in France. We focus instead on the labor market conditions that shape negotiated wage changes at contract renewal and …nd stronger impacts on wages close to the minimum but less so further up the wage distribution.…”
mentioning
confidence: 84%