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Regional Analysis of the Impact of the 2020 Health Crisis on the Private‑Sector Wage Bill: Structural and Local Effects

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  • Mallory Bedel-Mattmuller
  • Fadia El Kadiri
  • Lorraine Felder Zentz

Abstract

[eng] In metropolitan France, the private sector was severely affected by the health crisis: despite the widely deployed partial activity scheme, the wage bill fell on average by 5.3% in 2020. However, this overall drop conceals regional disparities. The aim of this article is to study the heterogeneous impact of the health crisis on the private‑sector wage bill by employment zones. The analysis shows that the sectoral employment structure is the key factor: it explains 60% of the variation in the shock broken down by region. However, there are also other effects that appear to be significant in certain zones: the labour force qualification level, the level of concentration of companies and the role played by commuters. The latter show that the presence of a neighbouring residential zone has a negative impact on the change in the private‑sector wage bill in the region under consideration. Furthermore, they cause the shock‑absorbing effect of temporary employment to spill over into several multiple zones, especially within one cluster identified in Brittany.

Suggested Citation

  • Mallory Bedel-Mattmuller & Fadia El Kadiri & Lorraine Felder Zentz, 2022. "Regional Analysis of the Impact of the 2020 Health Crisis on the Private‑Sector Wage Bill: Structural and Local Effects," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 536-37, pages 95-114.
    • Handle: RePEc:nse:ecosta:ecostat_2022_536_6
    DOI: https://doi.org/10.24187/ecostat.2022.536.2082
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    References listed on IDEAS

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    1. Sayuri Adriana Koike Quintanar, 2019. "Spatial Dependence of Labor Market Outcomes: the Case of the Metropolitan Area of Mexico City," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(2), pages 317-354.
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      More about this item

      JEL classification:

      • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
      • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
      • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
      • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
      • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
      • G01 - Financial Economics - - General - - - Financial Crises

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