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Wage share variations in France and Germany since 1970: what does really matter?

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Author Info

  • Nicolas Canry

    ()
    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

  • Arnaud Lechevalier

    ()
    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

Abstract

This paper refers to a few recent studies, which have focused on methodological issues related to the estimation of the wage share variations, to compare the evolutions in France and former West Germany since 1970. It is shown that the usual method overestimates the long run drop of wage share in both countries but that the magnitude and thus the contribution of different biases are quite different in France and Germany. However no bias can explain the sharp drop of wage share in Germany since 2001, which has to be analysed within the framework of the euro area.

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Bibliographic Info

Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00140529.

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Date of creation: 22 Sep 2006
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Publication status: Published - Presented, 4th Annual ESPAnet Conference, « Transformation of the Welfare State: Political Regulation and Social Inequality », 2006, Bremen, Germany
Handle: RePEc:hal:cesptp:halshs-00140529

Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00140529
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Related research

Keywords: Income distribution; Wage share; International comparison;

References

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  1. Ricardo J. Caballero & Mohamad L. Hammour, 1997. "Jobless Growth: Appropriability, Factor Substitution, and Unemployment," NBER Working Papers 6221, National Bureau of Economic Research, Inc.
  2. Wolf Dieter Heinbach, 2006. "Bargained Wages in Decentralized Wage-Setting Regimes," IAW Discussion Papers, Institut für Angewandte Wirtschaftsforschung (IAW) 26, Institut für Angewandte Wirtschaftsforschung (IAW).
  3. Olivier Blanchard & Francesco Giavazzi, . "Macroeconomic effects of regulation and deregulation in goods and labor markets," Working Papers, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University 187, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  4. Sebastian Dullien & Ulrich Fritsche, 2007. "Does the Dispersion of Unit Labor Cost Dynamics in the EMU Imply Long-run Divergence? Results from a Comparison with the United States of America and Germany," Macroeconomics and Finance Series, Hamburg University, Department Wirtschaft und Politik 200702, Hamburg University, Department Wirtschaft und Politik.
  5. Oliver J. Blanchard, 1997. "The Medium Run," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(2), pages 89-158.
  6. Adam S. Posen & Daniel Popov Gould, 2006. "Has EMU Had Any Impact on the Degree of Wage Restraint?," Working Paper Series, Peterson Institute for International Economics WP06-6, Peterson Institute for International Economics.
  7. Alain de Serres & Stefano Scarpetta & Christine de la Maisonneuve, 2002. "Sectoral Shifts in Europe and the United States: How They Affect Aggregate Labour Shares and the Properties of Wage Equations," OECD Economics Department Working Papers 326, OECD Publishing.
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