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Changes In Wage Inequality In France: The Impact Of Composition Effects (in French)

  • Verdugo, G.
  • Fraisse, H.
  • Horny, G.

This paper investigates the recent changes in the French wage structure from 1990 to 2008. To do so, we disentangle the impact of changes in employment probability, changes in the levels of education and experience and changes in the price of labor. Unlike other developped countries, we find that upper and lower tail inequality decline between the first and the last decile for male and female. The recent period thus could be described as a period of “great compression” of wages between the first and the last decile. As a result, the decline in education and experience returns has produced one of the most egalitarian wage structure ever observed in France since the 1960s.

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Paper provided by Banque de France in its series Working papers with number 370.

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Length: 40 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:bfr:banfra:370
Contact details of provider: Postal: Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS
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  18. Solon, Gary & Barsky, Robert & Parker, Jonathan A, 1994. "Measuring the Cyclicality of Real Wages: How Important Is Composition Bias?," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 1-25, February.
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  23. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
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