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How do minimum wages (MW) shape the aggregate wage dynamics? In this paper, we document new empirical findings on the effects of MW on wage rigidity using quarterly micro wage data matched with sector- and job-specific bargained MW. First, both national and sectoral MW have a significant effect on the timing and on the size of wage adjustments. In particular, they contribute to the strong seasonality of wage changes. Second, at the aggregate level, MW contribute to amplify, by a factor of 2, the response of wages to past inflation but they also delay the transmission of shocks to wages. The aggregate elasticities of wages with respect to past inflation, the national MW and industry-level MW are respectively 0.44, 0.19 and 0.15. Finally, we document significant spillover effects of the NMW on higher wages transiting through industry-level MW.
