Minimum Wage and the Average Wage in France: A Circular Relationship?

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.

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Year of publication:	2013-07
Authors:	Cette, Gilbert ; Chouard, Valérie ; Verdugo, Gregory
Institutions:	Institute for the Study of Labor (IZA)
Subject:	average wage \| minimum wage \| France

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Extent:	application/pdf
Series:	IZA Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	published in: Economics Bulletin, 2013, 33 (3), 1832-1839 Number 7502 10 pages
Classification:	E24 - Employment; Unemployment; Wages ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc ; J58 - Public Policy
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010884290