La revalorisation automatique du SMIC

Translated title of the contribution: Automatic indexation rules of the French minimum wage (SMIC)

Gilbert Cette, Étienne Wasmer

Research output: Contribution to journalArticle

Abstract

Contrary to most European countries, indexation rules of the French minimum wage are very precise. However, three possible rules are consistent with the texts, which diverge in particular in periods of deflation or of negative growth of real wages. The alternative interpretations can have a large impact on the dynamics of the minimum wage, on the dynamics of real wages compared to productivity and on the bottom of the wage distribution. This note examines the three rules and recommends the optimal one, which appear to be most robust to alternative scenarios of inflation and deflation.

Translated title of the contributionAutomatic indexation rules of the French minimum wage (SMIC)
Original languageFrench
Pages (from-to)139-159
Number of pages21
JournalRevue de l'OFCE
Volume112
Issue number1
DOIs
StatePublished - Feb 19 2010

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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