Spillover effect of the Minimum Wage in France: An UnconditionalQuantile Regression

Romain Aeberhardt (), Pauline Givord and Claire Marbot ()
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Romain Aeberhardt: ENSAE-CREST
Claire Marbot: INSEE-CREST

No 2016-05, Working Papers from Center for Research in Economics and Statistics

Abstract: This study evaluates the impact of the minimum wage on the earnings distribution, using an unconditional quantile regression method proposed by Firpo, Fortin, and Lemieux (2009). Our identification strategy relies on a unique setting that created an exogenous change in the minimum wage revaluation rule that occurred in France in the early 2000s. The gradual application of a working time reduction law resulted in the coexistence of several minimum wage levels. These levels were forced to converge to one single level between 2003 and 2005 resulting in exogenous variations of these different levels. For this specific period, we find that an increase in the minimum wage leads to signi cant but decreasing effects on the earnings distribution up to the seventh decile for men and up to the fifth for women.

Keywords: Minimum wage; earnings distribution; unconditional quantile regressions. (search for similar items in EconPapers)
JEL-codes: C21 J31 J38 (search for similar items in EconPapers)
Pages: 34
Date: 2016-03
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Citations: View citations in EconPapers (16)

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