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

Author

Listed:
  • Romain Aeberhardt

    (ENSAE-CREST)

  • Pauline Givord

    (INSEE-CREST)

  • Claire Marbot

    (INSEE-CREST)

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.

Suggested Citation

  • Romain Aeberhardt & Pauline Givord & Claire Marbot, 2016. "Spillover effect of the Minimum Wage in France: An UnconditionalQuantile Regression," Working Papers 2016-05, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2016-05
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    3. Alexander Herzog-Stein & Camille Logeay, 2019. "Short-Term macroeconomic evaluation of the German minimum wage with a VAR/VECM," IMK Working Paper 197-2019, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    4. Pérez Pérez, Jorge, 2020. "The minimum wage in formal and informal sectors: Evidence from an inflation shock," World Development, Elsevier, vol. 133(C).
    5. Carlos Oliveira, 2022. "How is the Minimum Wage Shaping the Wage Disitribution: Bite, Spillovers, and Wage Inequality," GEE Papers 0160, Gabinete de Estratégia e Estudos, Ministério da Economia, revised May 2022.
    6. Gautier, Erwan & Roux, Sébastien & Suarez Castillo, Milena, 2022. "How do wage setting institutions affect wage rigidity? Evidence from French micro data," Labour Economics, Elsevier, vol. 78(C).
    7. Oliveira, Carlos, 2021. "How is the Minimum Wage Shaping the Wage Distribution: Minimum Wage, Spillovers, and Wage Inequality in Portugal," MPRA Paper 112534, University Library of Munich, Germany.
    8. Erwan Gautier & Sebastien Roux & Milena Suarez-Castillo, 2019. "Do Minimum Wages Make Wages More Rigid? Evidence from French Micro Data," Working papers 720, Banque de France.
    9. Oliveira, Carlos, 2023. "The minimum wage and the wage distribution in Portugal," Labour Economics, Elsevier, vol. 85(C).
    10. Guillaume Cléaud & Francisco de Castro Fernández & Jorge Durán Laguna & Lucia Granelli & Martin Hallet & Anne Jaubertie & Carlos Maravall Rodriguez & Diana Ognyanova & Balazs Palvolgyi & Tsvetan Tsali, 2019. "Cruising at Different Speeds: Similarities and Divergences between the German and the French Economies," European Economy - Discussion Papers 103, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.

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    More about this item

    Keywords

    Minimum wage; earnings distribution; unconditional quantile regressions.;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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