Working Paper Series no. 64: Labour Share Income in France and in Germany (In French)

Abstract

In France and in Germany, the labour share income has recorded during the last thirty years some strong fluctuations. Those fluctuations could be linked to movements in price wedge and in interest rate and to increasing unemployment rate. After a theoretical examination of labour share income equation and its potential explanatory variables, we investigate the robustness of those explanatory variables on the sample 70-96. Unemployment rate and price wedge seem to be the relevant explanatory variables. At the opposite, there is no evidence of a significant impact of interest rate on labour share income.

Ferhat Mihoubi
March 1999

Classification JEL : E24, E25

Keywords : Employment, Wages, Labour share income