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Wage Rigidity, Collective Bargaining and the Minimum Wage: Evidence from French Agreement Data

Sanvi Avouyi-Dovi, Denis Fougere () and Erwan Gautier ()

No 7932, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Using several unique data sets on wage agreements at both the firm- and the industry-levels in France, we examine the impact of typical European wage-setting institutions on the form and the degree of wage rigidity. We highlight different stylized facts concerning wage stickiness. First, in France, the typical duration of a wage agreement is one year. Consequently, a Taylor (1980) -type model appears to reproduce appropriately the distribution of agreement durations. Some 30 percent of settlements stipulate several predetermined wage changes during the year following the date of signature of the agreement. The frequency of wage agreements is highly seasonal, but the dates at which agreements take effect are more staggered. The date at which the national minimum wage level is revised each year has a significant impact on the timetable of wage agreements, both at the firm- and at the industry-levels. Wage increases negotiated at these two levels mainly depend on the inflation regime, the firm profitability and the proportion of minimum-wage workers in the same industry.

Keywords: downward nominal wage rigidity; minimum wage; wage bargaining; wage stickiness (search for similar items in EconPapers)
JEL-codes: E30 J31 J50 (search for similar items in EconPapers)
Date: 2010-07
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Related works:
Journal Article: Wage Rigidity, Collective Bargaining, and the Minimum Wage: Evidence from French Agreement Data (2013) Downloads
Working Paper: Wage Rigidity, Collective Bargaining and the Minimum Wage: Evidence from French Agreement Data (2013)
Working Paper: Wage Rigidity, Collective Bargaining and the Minimum Wage: Evidence from French Agreement Data (2011) Downloads
Working Paper: Wage rigidity, collective bargaining and the minimum wage: evidence from French agreement data (2010) Downloads
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