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Wage Moderation in France

  • Marcello M. Estevão
  • Nigar Nargis

Using household level data for France from 1990 to 2000, we estimate a relationship between wages and unemployment taking into account compositional, time and regional effects. We show that this relationship shifted outward during the 1990s most likely because of a structural change in workers' behavior, i.e. "wage moderation". The outward shift was particularly large between 1996 and 2000 and undoubtedly contributed strongly to the exceptional employment performance during that period.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 02/151.

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Length: 31
Date of creation: 01 Sep 2002
Date of revision:
Handle: RePEc:imf:imfwpa:02/151
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  1. Olivier Blanchard & Lawrence F. Katz, 1996. "What We Know and Do Not Know About the Natural Rate of Unemployment," NBER Working Papers 5822, National Bureau of Economic Research, Inc.
  2. Francesco Daveri & Guido Tabellini, 2000. "Unemployment, growth and taxation in industrial countries," Economic Policy, CEPR;CES;MSH, vol. 15(30), pages 47-104, 04.
  3. Oliver J. Blanchard, 1997. "The Medium Run," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(2), pages 89-158.
  4. David Card, 1995. "The Wage Curve: A Review," Working Papers 722, Princeton University, Department of Economics, Industrial Relations Section..
  5. Bernard Salanié & Guy Laroque, 2000. "Une décomposition du non-emploi en France," Économie et Statistique, Programme National Persée, vol. 331(1), pages 47-66.
  6. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May.
  7. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
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