Wage Structure in France, 1977–96

Francis Kramarz and Sébastien Perez-Duarte

in The Structure of Wages

Published by University of Chicago Press

Published in print February 2009 | ISBN: 9780226470504
Published online February 2013 | e-ISBN: 9780226470511 | DOI:
Wage Structure in France, 1977–96

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This chapter, which deals with wage structure in France during the twenty years between 1976 and 1996 through the sieve of intra- and interfirm heterogeneity, evaluates the wage movements, as well as the wage dispersion and variation, through some sample statistics. Only when the unemployment rate decreased by a bit more than 1 percent between 1987 and 1989 did real wages fall. Reduction in labor cost leads to lower turnover for low-wage workers. Wage change for movers is much more dispersed, both in the upper part of the distribution and in the bottom part too. Correlation between the average wage in the firm and exit and entry rates is consistently negative throughout the years. A positive number of firms exhibit exit rates of one (the firm is destroyed). On average, 3 percent of the firms close every year.

Keywords: wage structure; France; wage movements; wage dispersion; labor cost; firm; unemployment

Chapter.  5176 words.  Illustrated.

Subjects: International Economics

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