Abstract

This paper examines the evolution of the wage structure in France after 1984. Our data come from two matched employer employee wage surveys performed in 1986 and 1992. So, we have two cross-sections of establishments and individuals. A subsample of establishments present in both surveys allows us to analyse time variations. We find that the wage inequality increased between 1986 and 1992, which seems to be, in large part, explained by the evolution of employer specific compensation policies. We analyse the role of employer characteristics in this evolution. We also show that between-plant specialization dramatically increased during the period in all dimensions. Finally, we observe that the evolutions of employer-specific wage policies are correlated with changes of the workforce in terms of experience and seniority.

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