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

Sanvi Avouyi-Dovi, Denis Fougere and Erwan Gautier

No 5835, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using several unique data sets on wage agreements at both industry and firm levels in France, we document stylized facts on wage stickiness and the impact of wage-setting institutions on wage rigidity. First, the average duration of wages is a little less than one year and around 10 percent of wages are modified each month by a wage agreement. Data patterns are consistent with predictions of a mixture of Calvo and Taylor models. The frequency of wage change agreements is rather staggered over the year but the frequency of effective wage changes is seasonal. The national minimum wage has a significant impact on the probability of a wage agreement and on the seasonality of wage changes. Negotiated wage increases are correlated with inflation, the national minimum wage increases and the firm profitability.

Keywords: downward nominal wage rigidity; wage stickiness; wage bargaining; minimum wage (search for similar items in EconPapers)
JEL-codes: E30 J31 J50 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2011-07
New Economics Papers: this item is included in nep-cba, nep-lab and nep-lma
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Published - published in: Review of Economics and Statistics, 2013, 95 (4), 1337-1351

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Related works:
Journal Article: 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 (2013)
Working Paper: Wage rigidity, collective bargaining and the minimum wage: evidence from French agreement data (2010)
Working Paper: Wage Rigidity, Collective Bargaining and the Minimum Wage: Evidence from French Agreement Data (2010)
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