Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80571
Authors: 
Garnero, Andrea
Kampelmann, Stephan
Rycx, François
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Paper 7351
Abstract: 
The paper explores the link between different institutional features of minimum wage systems and the minimum wage bite. We notably address the striking absence of studies on sectoral-level minima and exploit unique data covering 17 European countries and information from more than 1100 collective bargaining agreements. Results provide evidence for a neglected trade-off: systems with bargained sectoral-level minima are associated with higher Kaitz indices than systems with statutory floors, but also with more individuals actually paid below prevailing minima. Higher collective bargaining coverage can to some extent reduce this trade-off between sharp teeth (high wage floors) and empty mouths (noncompliance/noncoverage).
Subjects: 
minimum wage systems
collective bargaining
wage bite
sectoral data
Europe
JEL: 
J31
J33
J51
Document Type: 
Working Paper

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