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The (Unexpected) Structure of "Rents" on the French and British Labour Markets

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Author Info
Clark, Andrew E. () (CNRS, DELTA-Fédération Jourdan and IZA Bonn)
Senik, Claudia (Université Paris IV and DELTA-Fédération Jourdan)

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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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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1438.

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Length: 24 pages
Date of creation: Dec 2004
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Handle: RePEc:iza:izadps:dp1438

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Related research
Keywords: job satisfaction; wages; self-employment; public sector; permanent; full-time; rents;

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Find related papers by JEL classification:
C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
M51 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Firm Employment Decisions; Promotions

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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, ILR School, Cornell University, vol. 55(4), pages 595-609, July.
  2. Clark, Andrew & 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). [Downloadable!]
    Other versions:
  3. Blanchflower, David G. & Oswald, Andrew & Stutzer, Alois, 2001. "Latent entrepreneurship across nations," European Economic Review, Elsevier, vol. 45(4-6), pages 680-691, May. [Downloadable!] (restricted)
  4. Blanchflower, David G., 2000. "Self-employment in OECD countries," Labour Economics, Elsevier, vol. 7(5), pages 471-505, September. [Downloadable!] (restricted)
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  5. Van Reenen, John, 1996. "The Creation and Capture of Rents: Wages and Innovation in a Panel of U.K. Companies," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 195-226, February. [Downloadable!] (restricted)
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  6. Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May. [Downloadable!] (restricted)
  7. Rafael Lalive, 2007. "Do Wages Compensate for Workplace Disamenities?," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 53(3), pages 273-298.
  8. Abowd, John M & Lemieux, Thomas, 1993. "The Effects of Product Market Competition on Collective Bargaining Agreements: The Case of Foreign Competition in Canada," The Quarterly Journal of Economics, MIT Press, vol. 108(4), pages 983-1014, November. [Downloadable!] (restricted)
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  9. 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. [Downloadable!]
  10. Clark, Andrew E., 1997. "Job satisfaction and gender: Why are women so happy at work?," Labour Economics, Elsevier, vol. 4(4), pages 341-372, December. [Downloadable!] (restricted)
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  11. Blanchflower, David G & Oswald, Andrew J & Sanfey, Peter, 1996. "Wages, Profits, and Rent-Sharing," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 227-51, February. [Downloadable!] (restricted)
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  12. 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. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. repec:ese:iserwp: is not listed on IDEAS
  2. Booth, A.L. & Ours, J.C. van, 2007. "Job Satisfaction And Family Happiness: The Part-Time Work Problem," Discussion Paper 2007-69, Tilburg University, Center for Economic Research. [Downloadable!]
  3. López Bóo, Florencia & Madrigal, Lucia & Pagés, Carmen, 2009. "Part-Time Work, Gender and Job Satisfaction: Evidence from a Developing Country," IZA Discussion Papers 3994, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Andrew E. Clark, 2004. "Your money or your life: Changing job quality in OECD countries," DELTA Working Papers 2004-31, DELTA (Ecole normale supérieure). [Downloadable!]
    Other versions:
  5. Alison L. Booth & Jan C. van Ours, 2007. "Job Satisfaction and Family Happiness: The Part-time Work Puzzle," Department of Economics - Working Papers Series 1000, The University of Melbourne. [Downloadable!]
    Other versions:
  6. Andrew E. Clark, 2009. "Work, jobs and well-being across the Millennium," PSE Working Papers 2009-02, PSE (Ecole normale supérieure). [Downloadable!]
    Other versions:
  7. Yannis Georgellis & Elisabetta Iossa & Vurain Tabvuma, 2008. "Crowding Out Public Service Motivation," CEDI Discussion Paper Series 08-07, Centre for Economic Development and Institutions(CEDI), Brunel University. [Downloadable!]
  8. Josse Delfgaauw, 2005. "The Effect of Job Satisfaction on Job Search: Not just whether, but also where," Tinbergen Institute Discussion Papers 05-097/1, Tinbergen Institute. [Downloadable!]
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  9. Fernández-Kranz, Daniel & Rodriguez-Planas, Nuria, 2009. "The Part-Time Pay Penalty in a Segmented Labor Market," IZA Discussion Papers 4342, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Clark, Andrew E. & Colombier, Nathalie & Masclet, David, 2008. "Never the Same After the First Time: The Satisfaction of the Second-Generation Self-Employed," IZA Discussion Papers 3476, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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