Report
Are wages too high or too low in France?
We can actually defend both theories: Wages are too high in France since structural unemployment is abnormally high, especially for the unskilled, and since the sensitivity of unskilled employment to its cost is high; Wages are too low in France, with an abnormally low standard of living for low-income households. When we first look at the overall average wage , it looks like it is "normal" since: Real wages in France have kept up with productivity gains; The profit margin seems normal, as the self-financing rate for investments is neither too high nor too low. We also know that there is high unskilled unemployment and major pressure on the skilled labour market. This would spontaneously push the lowest wages down and the highest wages up through a market mechanism without changing the average wage, which is of course socially unacceptable.
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Natixis
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Patrick Artus
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