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The Structure of WagesAn International Comparison$
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Edward P. Lazear and Kathryn L. Shaw

Print publication date: 2009

Print ISBN-13: 9780226470504

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226470511.001.0001

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PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 25 September 2021

Wage Structure in France, 1977–96

Wage Structure in France, 1977–96

(p.401) 11 Wage Structure in France, 1977–96
The Structure of Wages

Francis Kramarz

Sébastien Perez-Duarte

University of Chicago Press

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

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