Link to the University of Pittsburgh
Link to the University Library SystemContact us link
AEI Banner

What Drove Relative Wages in France? Structural Decomposition Analysis in a General Equilibrium Framework, 1970-1992. ENEPRI Working Papers No. 5, September 2001

Jean, Sebastien and Bontout, Olivier. (2001) What Drove Relative Wages in France? Structural Decomposition Analysis in a General Equilibrium Framework, 1970-1992. ENEPRI Working Papers No. 5, September 2001. [Working Paper]

[img]
Preview
PDF
Download (237Kb) | Preview

    Abstract

    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.

    Export/Citation:EndNote | BibTeX | Dublin Core | ASCII (Chicago style) | HTML Citation | OpenURL
    Social Networking:
    Item Type: Working Paper
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > economic and financial affairs > economic policy
    Countries > France
    EU policies and themes > EU institutions & developments > institutional development/policy > historical development of EC (pre-1986)
    Subjects for EU documents: UNSPECIFIED
    EU Series: UNSPECIFIED
    ["eprint_fieldname_eusries" not defined]: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Centre for European Policy Studies (Brussels) > ENEPRI Working Papers
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 03 Oct 2009
    Page Range: p. 33
    Last Modified: 15 Feb 2011 18:15
    URI: http://aei.pitt.edu/id/eprint/11653

    Actions (login required)

    View Item

    Document Downloads