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Wage inequalities in France 1976-2004: a quantile regression analysis





  • M. GAINI


This paper studies changes in wage differentials accross education groups for full-time male workers in the French private sector, from 1976 to 2004. We apply quantile regressions to Mincer-type equations to disentangle between- and within-education group wage inequalities, and we describe separately their evolutions. We use a matched dataset of administrative data and Census information, which contains yearly data. Our main results are: (1) the overall wage inequality was stable from 1976 to 1992 and slightly decreased from 1995 to 2004. (2) Within-education group wage inequalities increase with education and are higher across non-vocational degrees than vocational ones. (3) Between-education group wage inequalities increase with experience. (4) The within-education group wage inequalities were rather stable from 1976 to 1992 and decreased between 1995 and 2004, strongly for low levels of experience. (5) The between-education group wage inequalities decreased all over the period, due to decreasing education premiums, particularly for low levels of experience. These results are related to the dramatic evolutions of the French labor market during this period: older cohorts gradually replaced by more educated ones, unemployment and minimum wage rises.

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File Function: Document de travail de la DESE numéro G2011-06
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Paper provided by Institut National de la Statistique et des Etudes Economiques, DESE in its series Documents de Travail de la DESE - Working Papers of the DESE with number g2011-06.

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Date of creation: 2011
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Handle: RePEc:crs:wpdeee:g2011-06
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  1. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Rising Wage Inequality: The Role of Composition and Prices," NBER Working Papers 11628, National Bureau of Economic Research, Inc.
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  6. David Card & John E. DiNardo, 2002. "Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 733-783, October.
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  10. Budria, Santiago & Moro-Egido, Ana, 2004. "Education, Educational Mismatch, and Wage Inequality: Evidence for Spain," MPRA Paper 93, University Library of Munich, Germany.
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  12. Roger Koenker & Zhijie Xiao, 2002. "Inference on the Quantile Regression Process," Econometrica, Econometric Society, vol. 70(4), pages 1583-1612, July.
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  17. Ian Walker & Yu Zhu, 2008. "The College Wage Premium and the Expansion of Higher Education in the UK," Working Papers 200817, Geary Institute, University College Dublin.
  18. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
  19. Heckman, James J. & Lochner, Lance John & Todd, Petra E., 2005. "Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond," IZA Discussion Papers 1700, Institute for the Study of Labor (IZA).
  20. 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.
  21. Thomas Lemieux, 2006. "Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?," American Economic Review, American Economic Association, vol. 96(3), pages 461-498, June.
  22. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
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  25. Rubinstein, Yona & Weiss, Yoram, 2006. "Post Schooling Wage Growth: Investment, Search and Learning," Handbook of the Economics of Education, Elsevier.
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