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The (unexpected) structure of "rents" on the French and British labour markets

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  • Andrew E. Clark
  • Claudia Senik

Abstract

This paper considers the allocation of labour on the French and British markets, using objective wage and subjective satisfaction data. We show that, in some sectors, workers enjoy both higher wages and higher job satisfaction. We argue that this reflects labour market wage rents. Perhaps surprisingly, wage rents are typical of the British public sector and permanent contracts, but not of their French counterparts. In France, such rents are found in full-time, rather than part-time jobs. Hence, the data provide little support for the usual a priori that the French labour market is structured along insider-outsider model lines, whereby wage rents are captured by the insiders of the public sector to the detriment of the private sector. However, they do suggest that part-time employment is involuntary to a far greater extent in France than in Great Britain.

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Paper provided by DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 2004-06.

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Date of creation: 2004
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Handle: RePEc:del:abcdef:2004-06

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  1. David G. Blanchflower & Andrew J. Oswald & Peter Sanfey, 1992. "Wages, Profits and Rent-Sharing," NBER Working Papers 4222, National Bureau of Economic Research, Inc.
  2. Clark, Andrew E. & Etilé, Fabrice & Postel-Vinay, Fabien & Senik, Claudia & Van der Straeten, Karine, 2004. "Heterogeneity in Reported Well-Being: Evidence from Twelve European Countries," IZA Discussion Papers 1339, Institute for the Study of Labor (IZA).
  3. repec:ese:iserwp:2003-02 is not listed on IDEAS
  4. Bardasi, Elena & Francesconi, Marco, 2004. "The impact of atypical employment on individual wellbeing: evidence from a panel of British workers," Social Science & Medicine, Elsevier, vol. 58(9), pages 1671-1688, May.
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  6. Andrew Clark, . "Job Satisfaction and Gender. Why are Women so Happy at Work?," Economics Discussion Papers 415, University of Essex, Department of Economics.
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  8. Van Reenen, John, 1994. "The Creation and Capture of Rents: Wages and Innovation in a Panel of UK Companies," CEPR Discussion Papers 1071, C.E.P.R. Discussion Papers.
  9. Rafael Lalive, 2007. "Do Wages Compensate for Workplace Disamenities?," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 53(3), pages 273-298.
  10. Bruno S. Frey & Matthias Benz, . "Being Independent is a Great Thing: Subjective Evaluations of Self-Employment and Hierarchy," IEW - Working Papers 135, Institute for Empirical Research in Economics - University of Zurich.
  11. Robert W. Fairlie, 2002. "Drug Dealing and Legitimate Self-Employment," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 538-567, July.
  12. John M. Abowd & Thomas Lemieux, 1991. "The Effects of Product Market Competition on Collective Bargaining Agreements: The Case of Foreign Competition in Canada," NBER Working Papers 3808, National Bureau of Economic Research, Inc.
  13. Blanchflower, David G & Oswald, Andrew J, 1998. "What Makes an Entrepreneur?," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 26-60, January.
  14. John S. Heywood & W. S. Siebert & Xiangdong Wei, 2002. "Worker sorting and job satisfaction: The case of union and government jobs," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(4), pages 595-609, July.
  15. Blanchflower, David G. & Oswald, Andrew & Stutzer, Alois, 2001. "Latent entrepreneurship across nations," European Economic Review, Elsevier, vol. 45(4-6), pages 680-691, May.
  16. Daiji Kawaguchi, 2002. "Compensating Wage Differentials among Self-Employed Workers:Evidence from Job Satisfaction Scores," ISER Discussion Paper 0568, Institute of Social and Economic Research, Osaka University.
  17. Olivier Godechot & Marc Gurgand, 2000. "Quand les salariés jugent leur salaire," Économie et Statistique, Programme National Persée, vol. 331(1), pages 3-24.
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