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Wage Inequalities and Firm-Specific Compensation policies in France


  • Françis Kramarz
  • Françis 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.

Suggested Citation

  • Françis Kramarz & Françis Kramarz & Louis-Paul Pelé, 1996. "Wage Inequalities and Firm-Specific Compensation policies in France," Annals of Economics and Statistics, GENES, issue 41-42, pages 369-386.
  • Handle: RePEc:adr:anecst:y:1996:i:41-42:p:369-386

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    Cited by:

    1. Frimmel, Wolfgang & Horvath, Thomas & Schnalzenberger, Mario & Winter-Ebmer, Rudolf, 2018. "Seniority wages and the role of firms in retirement," Journal of Public Economics, Elsevier, vol. 164(C), pages 19-32.
    2. Michel Gollac & Francis Kramarz, 1997. "L'ordinateur : un outil de sélection ? Utilisation de l'informatique, salaire et risque de chômage," Revue Économique, Programme National Persée, vol. 48(5), pages 1115-1143.
    3. Magda, Iga & Marsden, David & Moriconi, Simone, 2016. "Lower coverage but stronger unions? Institutional changes and union wage premia in Central Europe," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 638-656.
    4. repec:eee:labchp:v:3:y:1999:i:pb:p:2629-2710 is not listed on IDEAS
    5. repec:eee:labeco:v:57:y:2019:i:c:p:164-176 is not listed on IDEAS
    6. Cortes, Guido Matias & Salvatori, Andrea, 2019. "Delving into the demand side: Changes in workplace specialization and job polarization," Labour Economics, Elsevier, vol. 57(C), pages 164-176.
    7. Lane, Julia I. & Salmon, Laurie A. & Spletzer, James R., 2007. "Establishment Wage Differentials," Working Papers 403, U.S. Bureau of Labor Statistics.
    8. Daniel Verger, 1996. "Aux sources des carrières salariales et de l'emploi : les firmes et les salariés," Économie et Statistique, Programme National Persée, vol. 299(1), pages 3-20.
    9. Denis Fougère & Francis Kramarz, 1997. "Le marché du travail en France : quelques pistes d'analyse," Économie et Statistique, Programme National Persée, vol. 301(1), pages 51-60.
    10. Battisti, Michele, 2017. "High wage workers and high wage peers," Labour Economics, Elsevier, vol. 46(C), pages 47-63.

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