The Decline in Demand for Unskilled Labor: An Empirical Analysis Method and its Application to France

Dominique Goux · Eric Maurin A

102 citations0/0 files storedThe Review of Economics and Statistics

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Labor market dynamics and wage inequality Global trade and economics Economic Theory and Policy

Abstract

The decline in the unskilled share of French employment is chiefly due to the slackness of domestic demand for those industries with the highest proportion of unskilled workers. The spread of computers has not been particularly conducive to substitution between skilled and unskilled labor. We test and accept the hypothesis of technical-progress neutrality within French industries. The mechanisms that generate inequality do not appear to be the same in France and in the United States. The source of inequality isn't so much technical progress per se as its interaction with the institutions that regulate the labor market.

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References

2024The Quarterly Journal of Economics 1996Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach 1994Changes in the Demand for Skilled Labor within U. S. Manufacturing: Evidence from the Annual Survey of Manufactures 1995How Trade Hurt Unskilled Workers 1996The Economic Impact of Minimum Wages in Europe 2000Returns to firm-provided training: evidence from French worker–firm matched data 1997Does unmeasured ability explain the higher wages of new technology workers?

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