TY - RPRT AU - Garnero, Andrea AU - Kampelmann, Stephan AU - Rycx, François TI - Sharp Teeth or Empty Mouths? Revisiting the Minimum Wage Bite with Sectoral Data PY - 2013/Apr/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 7351 UR - https://www.iza.org/index.php/publications/dp7351 AB - 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). KW - sectoral data KW - minimum wage systems KW - collective bargaining KW - wage bite KW - Europe ER -