Firms, wage dynamics, and labour contract choices

Entreprises, dynamique des salaires et choix des contrats de travail

Marco Palladino
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Marco Palladino: ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique

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Abstract: The dynamics of wage inequality and the challenges posed by labour market segmentation - where different groups of workers have different protections and employment conditions - are at the forefront of academic and policy discussions. Wage inequality is a driving force of economic inequality and its rise over several decades in most rich countries is well documented. Among the drivers of labour market segmentation, the division along the lines of the permanent versus the temporary nature of employment contracts has been one of the most debated issues.This thesis studies the interplay between firms and institutions in determining wage dynamics and labour contract choices. The first chapter looks at the role of firms in shaping wage inequality in France. In countries such as Germany and the United States, firms contribute significantly to growing wage dispersion. In France, on the other hand, wage inequality has remained stable or even declined. This chapter provides some insights into this French anomaly.In recent years, concerns about the spread of job insecurity have led several countries to gradually reintroduce restrictions on the use of temporary contracts, marking a significant shift from the previous policy regime. The second chapter examines how the labour market responds to this type of reform through adjustments in employment and occupational flows. The third chapter examines whether these occupational changes are accompanied by adjustments in wage dynamics.

Keywords: Wage inequality; Employment protection legislation; Labor market institutions; Matched employer employee data; Inégalités salariales; Législation sur la protection de l'emploi; Institutions du marché du travail; Données appariées employeur-employé (search for similar items in EconPapers)
Date: 2023-12-12
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Published in Economics and Finance. Institut d'études politiques de paris - Sciences Po, 2023. English. ⟨NNT : 2023IEPP0054⟩

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