The Role of Tasks, Contractual Arrangements and Job Composition in Explaining the Dynamics of Wage Inequality : Evidence from France

The paper studies the determinants of wage differentials in France over time analysing the effect of a set of covariates at different points on the wage distribution scale. We simultaneously test various possible explanatory factors: the tasks performed by workers, organisational methods, contractual arrangements, and individual characteristics. We do so by employing a unique worker-level database, the French Enquête Complémentaire Emploi: Conditions de travail from 2005 to 2016. Our main findings support the hypothesis according to which wage differentials along the wage distribution are almost entirely explained by contractual and work arrangements rather than tasks and organisational practices. Conversely, a very minor role if any is played by tasks contents and organisational methods. Specifically, returns to permanent and part-time contracts – together with the job structure and the number of days worked per week – are the most relevant equalising determinants in the 90-10 wage differences. Conversely, changes to the returns of jobs are more important in the 50-10 gap. Overall, evidence for the French case does not support the main argument of the Routine-Biased Technical Change hypothesis