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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

The Review of Economics and Statistics, 2013, vol. 95, issue 4, 1337-1351

Abstract: Using data sets on wage agreements at both industry and firm levels in France, we document stylized facts on wage stickiness. The average duration of wages is a little less than one year, and 10% of wages are modified each month by a wage agreement. The frequency of wage change agreements is staggered over the year, but the frequency of effective wage changes is seasonal. The national minimum wage has a significant impact on the probability and the seasonality of wage changes. Negotiated wage increases are correlated with inflation, minimum wage increases, and firm profitability. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Keywords: wage stickiness; wage bargaining; minimum wage; downward nominal wage rigidity (search for similar items in EconPapers)
JEL-codes: E30 J31 J50 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (67)

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Working Paper: 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 (2011) Downloads
Working Paper: Wage rigidity, collective bargaining and the minimum wage: evidence from French agreement data (2010) Downloads
Working Paper: Wage Rigidity, Collective Bargaining and the Minimum Wage: Evidence from French Agreement Data (2010) Downloads
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