What Drove Relative Wages in France? Structural Decomposition Analysis in a General Equilibrium Framework, 1970-92
This paper confronts a CGE model to observed evolutions in France, between 1970 and 1992, through a structural decomposition analysis. The choice of the model and the assumption of constant elasticities over time enable the structural change of the economy between two equilibria to be summarised through a set of four types of state variables, reflecting the effect of technical change, changes in factor supplies, shifts in consumption patterns, and international trade. Simulations then allow the contribution of each of these shocks to be assessed. We find that technical change had a strong positive impact on the relative wage of skilled to unskilled workers, while the impact of changes in factor supplies is strongly negative. The effect of international trade is far less important. However, if we take into account a trade-induced effect on productivity, then we find that trade substantially increased wage inequalities.
|Date of creation:||Sep 2001|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +32 2 229 3911
Fax: +32 2 219 4151
Web page: http://www.enepri.org
More information through EDIRC
|Order Information:|| Postal: ENEPRI c/o CEPS Place du Congrès 1 1000 Brussels Belgium|
Web: http://www.enepri.org Email:
When requesting a correction, please mention this item's handle: RePEc:epr:enepwp:005. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CEPS)The email address of this maintainer does not seem to be valid anymore. Please ask CEPS to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.