Changes in the Relative Structure of Wages and Employment: A Comparison of the United States, Canada, and France
AbstractStandard economic models suggest that adverse demand shocks will lead to bigger employment losses if institutional factors prevent real wages from declining. Some analysts have argued that this insight explains the dichotomy between the United States, where real wages of less-skilled workers fell over the 1980s and aggregate employment expanded vigorously, and Europe, where real wages of less-skilled workers were constant and employment was stagnant. We find little support for this hypothesis when we compare recent changes in wages and employment rates for different age and education groups in the United States, Canada, and France.
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Bibliographic InfoPaper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 734.
Date of creation: Dec 1995
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flexibility; international comparisons; wage structure;
Other versions of this item:
- David Card & Francis Kramarz & Thomas Lemieux, 1999. "Changes in the Relative Structure of Wages and Employment: A Comparison of the United States, Canada, and France," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 843-877, August.
- David Card & Francis Kramarz & Thomas Lemieux, 1996. "Changes in the Relative Structure of Wages and Employment: A Comparison of the United States, Canada, and France," NBER Working Papers 5487, National Bureau of Economic Research, Inc.
- B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
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