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Wage share variations in France and Germany since 1970: what does really matter?

Author

Listed:
  • Nicolas Canry

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Arnaud Lechevalier

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract
This paper refers to a few recent studies, which have focused on methodological issues related to the estimation of the wage share variations, to compare the evolutions in France and former West Germany since 1970. It is shown that the usual method overestimates the long run drop of wage share in both countries but that the magnitude and thus the contribution of different biases are quite different in France and Germany. However no bias can explain the sharp drop of wage share in Germany since 2001, which has to be analysed within the framework of the euro area.

Suggested Citation

  • Nicolas Canry & Arnaud Lechevalier, 2006. "Wage share variations in France and Germany since 1970: what does really matter?," Post-Print halshs-00140529, HAL.
    • Handle: RePEc:hal:journl:halshs-00140529
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00140529
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    References listed on IDEAS

    as
    1. Philippe Askenazy & Gilbert Cette & Arnaud Sylvain, 2011. "Le partage de la valeur ajoutée," PSE-Ecole d'économie de Paris (Postprint) halshs-00654669, HAL.
    2. Olivier Blanchard & Francesco Giavazzi, 2003. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 879-907.
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    5. Alain de Serres & Stefano Scarpetta & Christine de la Maisonneuve, 2002. "Sectoral Shifts in Europe and the United States: How They Affect Aggregate Labour Shares and the Properties of Wage Equations," OECD Economics Department Working Papers 326, OECD Publishing.
    6. Wolf Dieter Heinbach, 2006. "Bargained Wages in Decentralized Wage-Setting Regimes," IAW Discussion Papers 26, Institut für Angewandte Wirtschaftsforschung (IAW).
    7. Sebastian Dullien & Ulrich Fritsche, 2008. "Does the dispersion of unit labor cost dynamics in the EMU imply long-run divergence?," International Economics and Economic Policy, Springer, vol. 5(3), pages 269-295, November.
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    9. Jean-Philippe Cotis & Elisabeth Rignols, 1998. "Le partage de la valeur ajoutée : quelques enseignements tirés du « paradoxe franco-américain »," Revue de l'OFCE, Programme National Persée, vol. 65(1), pages 291-344.
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    Keywords

    Income distribution; Wage share; International comparison;
    All these keywords.

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