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Wage inequalities in France 1976-2004: a quantile regression analysis

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  • P. CHARNOZ

    (Insee-Crest)

  • É. COUDIN

    (Ensae)

  • M. GAINI

    (Insee)

Abstract

This paper studies changes in wage differentials accross education groups for full-time male workers in the French private sector, from 1976 to 2004. We apply quantile regressions to Mincer-type equations to disentangle between- and within-education group wage inequalities, and we describe separately their evolutions. We use a matched dataset of administrative data and Census information, which contains yearly data. Our main results are: (1) the overall wage inequality was stable from 1976 to 1992 and slightly decreased from 1995 to 2004. (2) Within-education group wage inequalities increase with education and are higher across non-vocational degrees than vocational ones. (3) Between-education group wage inequalities increase with experience. (4) The within-education group wage inequalities were rather stable from 1976 to 1992 and decreased between 1995 and 2004, strongly for low levels of experience. (5) The between-education group wage inequalities decreased all over the period, due to decreasing education premiums, particularly for low levels of experience. These results are related to the dramatic evolutions of the French labor market during this period: older cohorts gradually replaced by more educated ones, unemployment and minimum wage rises.

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Paper provided by Institut National de la Statistique et des Etudes Economiques, DESE in its series Documents de Travail de la DESE - Working Papers of the DESE with number g2011-06.

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Date of creation: 2011
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Handle: RePEc:crs:wpdeee:g2011-06

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Keywords: wage differentials by skills; wage inequality; within-group wage inequality; between-group wage inequality; return heterogeneity; quantile regressions;

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Cited by:
  1. Magnac, Thierry & Pistolesi, Nicolas & Roux, Sébastien, 2013. "Post schooling human capital investments and the life cycle variance of earnings," TSE Working Papers 13-380, Toulouse School of Economics (TSE).
  2. de Oliveira Cruz , Bruno & Naticchioni , Paolo, 2012. "Falling urban wage premium and inequality trends: evidence for Brazil," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 24, pages 91-113.
  3. M.-É. Clerc & O. Monso & E. Pouliquen, 2011. "Intergenerational inequalities since baby-boom," Documents de Travail de la DESE - Working Papers of the DESE g2011-11, Institut National de la Statistique et des Etudes Economiques, DESE.

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