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Finance and the rise in inequalities in France

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  • Olivier Godechot

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CMH - Centre Maurice Halbwachs - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - Département de Sciences sociales ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres, CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique)

Abstract

Based on the DADS, a very detailed French database on wages, we show that wage inequalities started to increase in France in the mid-1990s. This phenomenon is limited to the top end of income distribution and concerns mainly the top 0.1%, whose share of total salaries increased from 1.2% to 2% between 1996 and 2007. This increase in inequality was accompanied by some changes in the social composition of this wage elite. These include a decline in employees in the provinces, in CEOs; and an increase in lower rank management like chief officers and other administrative managers, in sportspersons, and in Paris Region employees. A sector approach shows that finance (3% of private sector employees) is responsible for half of the rise in inequalities at the top end of wage distribution. We discuss the role of the size of financial activity in the tremendous increase in top financial wages.

Suggested Citation

  • Olivier Godechot, 2011. "Finance and the rise in inequalities in France," Working Papers halshs-00584881, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00584881
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00584881
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    References listed on IDEAS

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    Cited by:

    1. Daniel Detzer, 2015. "Inequality and the Financial System— The Case of Germany," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 585-608.
    2. Michel Forsé & Jean-Luc Parodi, 2011. "La perception des inégalités en France depuis dix ans," Sciences Po publications info:hdl:2441/eu4vqp9ompq, Sciences Po.
    3. Pierre Cahuc & Edouard Challe, 2012. "Produce Or Speculate? Asset Bubbles, Occupational Choice, And Efficiency," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(4), pages 1105-1131, November.
    4. Jean-François Carpantier & Christelle Sapata, 2013. "An Ex-Post View of Inequality of Opportunity in France and its Regions," Journal of Labor Research, Springer, vol. 34(3), pages 281-311, September.
    5. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09hi4c8b6ai is not listed on IDEAS
    6. CARPANTIER, Jean-François & SAPATA, Christelle, 2012. "Unfair inequalities in France: A regional comparison," LIDAM Discussion Papers CORE 2012038, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Gusmano, Michael K. & Weisz, Daniel & Rodwin, Victor G. & Lang, Jonas & Qian, Meng & Bocquier, Aurelie & Moysan, Veronique & Verger, Pierre, 2014. "Disparities in access to health care in three French regions," Health Policy, Elsevier, vol. 114(1), pages 31-40.

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