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An Econometric Study of the Behaviour of Real Wages in Two French Industries

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  • A T Flegg
  • J D Boardley
  • C D Webber
  • G C Mulvey
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    Abstract

    This paper examines the behaviour of real wages in the French textile and paper industries. The econometric analysis is embedded within theoretical framework of the insider-outsider hypothesis. The models attempt to measure the impact of insiders and outsiders on real wages, and the part that insiders play in creating hysteresis in employment. The analysis uses a range of industry-specific and aggregate variables to measure the influence of insiders and outsiders. Quarterly data for the period 1972-97 are employed. The econometric results indicate that both internal and external variables play a statistically significant role in explaining changes in real wages, and that the pure insider-outsider hypothesis can be rejected for both industries. As far as its authors are aware, this paper is the first to test for insider power in French industry.

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    File URL: http://www.economicissues.org.uk/Files/2001/100dFlegg.pdf
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    Bibliographic Info

    Article provided by Economic Issues in its journal Economic Issues.

    Volume (Year): 5 (2000)
    Issue (Month): 1 (March)
    Pages: 41-60

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    Handle: RePEc:eis:articl:100flegg

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