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Babet, Damien, Olivier Godechot and Marco Palladino, 2022, In the Land of AKM: Explaining the Dynamics of Wage Inequality in France, Insee, Document de travail, forthcoming. We use a newly built and exhaustive matched employer-employee database to study the contribution of firms to the dynamics of wage inequalities in France, where the original Abowd, Kramarz and Margolis (1999) double fixed effects model of log-wages was originally estimated on sampled data. Contrary to other countries, overall wage inequalities decreased in the 2002-2016 period. But France is not entirely an exception: the same polarizing dynamics observed in other countries are operating through an increase in between-firm inequalities. By applying the AKM model of log-wages with workers and firms additive fixed effects, we document increased sorting of high-wage workers to high-wage firms. We correct for bias in estimates of variance and covariance by clustering firms, and by splitting the sample as a simplification of previous methods. The rise in sorting is robust to these correction strategies and linked entirely to firm demographics and worker composition changes over time across firms. Over the same period, bottom earnings percentiles increased more than the rest of the distribution, in line with the rise in the legal minimum wage. As a result, within-firm inequalities decreased, more than offsetting the rising between-firm inequalities. |
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![]() OgO: plus ici|more here [Introduction to sociology] Syllabus and compulsory readings Syllabus et lectures obligatoires Olivier Godechot 2024-2025 In addition to the readings that you will study ...: plus ici|more here [Sociology of Inequalities] Master of sociology, M1, Fall 2024 Fridays 8:00-10:00 Room 402 - 56 rue des Saints Pères Olivier Godechot and Lidia Panico ...: plus ici|more here [Causal methods in sociology] 10:15-12:15 on Tuesdays 18 hours from September 3rd to November 5th 2024 Room C.S21 - Campus Saint-Thomas This course is a non-technical ...: plus ici|more here [R] Quelques fonctions utiles pour R Je construis parfois des petites fonctions qui peuvent être utiles. ## Improved summary function, with ...: plus ici|more here [Introduction to sociology] 2023-2024: plus ici|more here [Sociology of Inequalities] 2023-2024: plus ici|more here [Causal methods in sociology] 2023-2024: plus ici|more here [Enseignements] Statistiques: plus ici|more here [Publications] Godechot, Olivier et Elif Bulut, Les fissures de la digue républicaine, La vie des idées: plus ici|more here Tweets (rarely/rarement): @OlivierGodechot |
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