Changes in Wage Inequality in France: The Impact of Composition Effects (in French)

40 Pages Posted: 16 Mar 2012

See all articles by Gregory Verdugo

Gregory Verdugo

Université Paris I Panthéon-Sorbonne - Centre d'Economie de la Sorbonne (CES)

Henri Fraisse

Banque de France

Guillaume Horny

Banque de France

Date Written: March 1, 2012

Abstract

This paper investigates the recent changes in the French wage structure from 1990 to 2008. To do so, we disentangle the impact of changes in employment probability, changes in the levels of education and experience and changes in the price of labor. Unlike other developped countries, we find that upper and lower tail inequality decline between the first and the last decile for male and female. The recent period thus could be described as a period of “great compression” of wages between the first and the last decile. As a result, the decline in education and experience returns has produced one of the most egalitarian wage structure ever observed in France since the 1960s.

Note: Downloadable document is in French.

Keywords: Wage Inequality, France

JEL Classification: J3, D3

Suggested Citation

Verdugo, Gregory and Fraisse, Henri and Horny, Guillaume, Changes in Wage Inequality in France: The Impact of Composition Effects (in French) (March 1, 2012). Banque de France Working Paper No. 370, Available at SSRN: https://ssrn.com/abstract=2023083 or http://dx.doi.org/10.2139/ssrn.2023083

Gregory Verdugo (Contact Author)

Université Paris I Panthéon-Sorbonne - Centre d'Economie de la Sorbonne (CES) ( email )

106-112 Boulevard de l'hopital
106-112 Boulevard de l'Hôpital
Paris Cedex 13, 75647
France

Henri Fraisse

Banque de France ( email )

Paris
France

Guillaume Horny

Banque de France ( email )

Paris
France

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