Structural Labor Market Changes in France

42 Pages Posted: 7 Jun 2005

See all articles by Marcello M. Estevão

Marcello M. Estevão

International Monetary Fund (IMF) - Western Hemisphere Department

Nigar Nargis

Cornell University - Department of Economics; IZA Institute of Labor Economics

Date Written: June 2005

Abstract

France posted remarkable gains in employment in the second half of the 1990s, suggesting that, beyond cyclical factors, structural unemployment may have changed in the period. We provide a novel methodology to separate structural from cyclical labor market changes and apply it to French household level data from 1990 to 2000. We show that the equilibrium relationship between real wages and unemployment has improved significantly in France in the second half of the 1990s. Further calculations suggest that long-term unemployment will decline substantially in France with respect to its average level in the 1990s if this improved trade-off is not undone.

Keywords: Employment, wages, bargaining, structural change, labor market

JEL Classification: D2, E2, J23

Suggested Citation

Estevao, Marcello M. and Nargis, Nigar, Structural Labor Market Changes in France (June 2005). Available at SSRN: https://ssrn.com/abstract=738143 or http://dx.doi.org/10.2139/ssrn.738143

Marcello M. Estevao (Contact Author)

International Monetary Fund (IMF) - Western Hemisphere Department ( email )

700 19th St., NW
HQ1-10-115
Washington, DC 20431
United States
202-623-6038 (Phone)
202-589-6038 (Fax)

Nigar Nargis

Cornell University - Department of Economics ( email )

414 Uris Hall
Ithaca, NY 14853-7601
United States
607-255-8078 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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