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Wage Inequalities and Firm-Specific Compensation policies in France

  • Françis KRAMARZ
  • Francis KRAMARZ
  • Louis-Paul PELÉ

This paper examines the evolution of the wage structure in France after 1984. Our data come from two matched employer-employee wage surveys performed in 1986 and 1992. So, we have two cross-sections of establishments and individuals. A subsample of establishments present in both surveys allows us to analyse time-variations. We find that the wage inequality increased between 1986 and 1992, which seems to be, in large part, explained by the evolution of employer-specific compensation policies. We analyse the role of employer characteristics in this evolution. We also show that between-plant specialization dramatically increased during the period in all dimensions. Finally, we observe that the evolutions of employer-specific wage policies are correlated with changes of the workforce in terms of experience and seniority.

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Article provided by ENSAE in its journal Annals of Economics and Statistics.

Volume (Year): (1996)
Issue (Month): 41-42 ()
Pages: 369-386

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Handle: RePEc:adr:anecst:y:1996:i:41-42:p:15
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