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Wage Inequalities and Firm-Specific Compensation policies in France

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  • Françis Kramarz
  • Françis Kramarz
  • Louis-Paul Pelé

Abstract

This paper examines the evolution of the wage structure in France after 1984. Our data come from two matched employer-employee wage surveys performed in 1986 and 1992. So, we have two cross-sections of establishments and individuals. A subsample of establishments present in both surveys allows us to analyse time-variations. We find that the wage inequality increased between 1986 and 1992, which seems to be, in large part, explained by the evolution of employer-specific compensation policies. We analyse the role of employer characteristics in this evolution. We also show that between-plant specialization dramatically increased during the period in all dimensions. Finally, we observe that the evolutions of employer-specific wage policies are correlated with changes of the workforce in terms of experience and seniority.

Suggested Citation

  • Françis Kramarz & Françis Kramarz & Louis-Paul Pelé, 1996. "Wage Inequalities and Firm-Specific Compensation policies in France," Annals of Economics and Statistics, GENES, issue 41-42, pages 369-386.
    • Handle: RePEc:adr:anecst:y:1996:i:41-42:p:369-386
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    Cited by:

    1. Frimmel, Wolfgang & Horvath, Thomas & Schnalzenberger, Mario & Winter-Ebmer, Rudolf, 2018. "Seniority wages and the role of firms in retirement," Journal of Public Economics, Elsevier, vol. 164(C), pages 19-32.
    2. A. R. Cardoso, 2000. "Wage differentials across firms: an application of multilevel modelling," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(4), pages 343-354.
    3. Susana Iranzo & Fabiano Schivardi & Elisa Tosetti, 2008. "Skill Dispersion and Firm Productivity: An Analysis with Employer-Employee Matched Data," Journal of Labor Economics, University of Chicago Press, vol. 26(2), pages 247-285, April.
    4. Kremer, M & Maskin, E, 1996. "Wage Inequality and Segregation by Skill," Working papers 96-23, Massachusetts Institute of Technology (MIT), Department of Economics.
    5. repec:eee:labchp:v:3:y:1999:i:pb:p:2629-2710 is not listed on IDEAS
    6. Cortes, Guido Matias & Salvatori, Andrea, 2019. "Delving into the demand side: Changes in workplace specialization and job polarization," Labour Economics, Elsevier, vol. 57(C), pages 164-176.
    7. Pekkarinen, Tuomas, 2002. "Complexity, wages, and the O-ring production function: evidence from Finnish panel data," Labour Economics, Elsevier, vol. 9(4), pages 531-546, September.
    8. Gerlach Knut & Stephan Gesine, 2006. "Bargaining Regimes and Wage Dispersion," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 226(6), pages 629-645, December.
    9. Xavier D'Haultfœuille & Roland Rathelot, 2017. "Measuring segregation on small units: A partial identification analysis," Quantitative Economics, Econometric Society, vol. 8(1), pages 39-73, March.
    10. Marie Leclair & Pascale Petit, 2004. "Présence syndicale dans les établissements : quel effet sur les inégalités salariales entre les hommes et les femmes ?," Cahiers de la Maison des Sciences Economiques v04084, Université Panthéon-Sorbonne (Paris 1).
    11. Cabrales, Antonio & Calvó-Armengol, Antoni, 2008. "Interdependent preferences and segregating equilibria," Journal of Economic Theory, Elsevier, vol. 139(1), pages 99-113, March.
    12. Magda, Iga & Marsden, David & Moriconi, Simone, 2016. "Lower coverage but stronger unions? Institutional changes and union wage premia in Central Europe," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 638-656.
    13. Battisti, Michele, 2017. "High wage workers and high wage peers," Labour Economics, Elsevier, vol. 46(C), pages 47-63.
    14. Michel Gollac & Francis Kramarz, 1997. "L'ordinateur : un outil de sélection ? Utilisation de l'informatique, salaire et risque de chômage," Revue Économique, Programme National Persée, vol. 48(5), pages 1115-1143.
    15. Müller, Bettina, 2008. "Matching of Individuals for Start-Ups: A Test of the O-Ring Theory," ZEW Discussion Papers 08-112, ZEW - Leibniz Centre for European Economic Research.
    16. Duranton, Gilles, 2004. "The economics of production systems: Segmentation and skill-biased change," European Economic Review, Elsevier, vol. 48(2), pages 307-336, April.
    17. Antonio Cabrales, 2010. "The causes and economic consequences of envy," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 1(4), pages 371-386, September.
    18. Sabrina Teyssier, 2008. "Les Modes de Rémunération comme Mécanismes Sélectifs de la Main d’oeuvre : Fondements Théoriques et Estimations Empiriques," Working Papers 0818, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    19. Lane, Julia I. & Salmon, Laurie A. & Spletzer, James R., 2007. "Establishment Wage Differentials," Working Papers 403, U.S. Bureau of Labor Statistics.
    20. Even Caroli & John Van Reenen, 1999. "Organization, skill and technology: evidence from a panel of British and French establishments," IFS Working Papers W99/23, Institute for Fiscal Studies.
    21. Cortes, Guido Matias & Lerche, Adrian & Schönberg, Uta & Tschopp, Jeanne, 2023. "Technological Change, Firm Heterogeneity and Wage Inequality," IZA Discussion Papers 16070, Institute of Labor Economics (IZA).
    22. Daniel Verger, 1996. "Aux sources des carrières salariales et de l'emploi : les firmes et les salariés," Économie et Statistique, Programme National Persée, vol. 299(1), pages 3-20.
    23. Gavilan, Angel, 2012. "Wage inequality, segregation by skill and the price of capital in an assignment model," European Economic Review, Elsevier, vol. 56(1), pages 116-137.
    24. Gesine Stephan & Knut Gerlach, 2005. "Wage settlements and wage setting: results from a multi-level model," Applied Economics, Taylor & Francis Journals, vol. 37(20), pages 2297-2306.
    25. Denis Fougère & Francis Kramarz, 1997. "Le marché du travail en France : quelques pistes d'analyse," Économie et Statistique, Programme National Persée, vol. 301(1), pages 51-60.

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