Report
Patrick Artus

Why has income distribution not become skewed against wage earners in France?

Since the end of the 1990s, income distribution has become highly skewed against wage earners across the OECD as a whole, but not in France. What accounts for this particular situation in France, which should make one cautious when commenting on wage trends? It is also seen in Italy, where it can be explained by the lack of productivity gains, but in France productivity gains have increased almost as much as in other OECD countries; The minimum wage is high in France relative to the median wage, which has prevented the small increases in low wages seen in other OECD countries; The large multinationals (CAC40) have a significant weight in the French economy, and can pay part of the global profits they generate to their French employees; Even though unionisation is low in France, the power of trade unions has remained stronger than in Anglo-Saxon countries or Japan; French capitalism is probably less harsh and more inclusive than Anglo-Saxon capitalism.
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Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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