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N° 2000 - 03 |
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| January |
What Drove Relative Wages in France? Structural
Decomposition Analysis in a
General Equilibrium Framework, 1970-1992 |
Sébastien Jean
Olivier Bontout |
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| 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. |
Abstract |
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| Decomposition analysis; General equilibrium
model; Relative wages; France |
Keywords |
| D58, F16 |
JEL classification |
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