%0 Report
        %A Bozio, Antoine
%A Breda, Thomas
%A Guillot, Malka
        %T The Contribution of Payroll Taxation to Wage Inequality in France
        %D 2020
        %8 2020 May
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 13317
        %U https://www.iza.org/index.php/publications/dp13317
        %X Over the 1967-2015 period, net wage inequality has decreased in France by 25%, in contrast to the significant increase experienced by most developed countries. Less well known is the fact that labor cost inequality has actually increased by 8% over the same period. We show that, (a) standard demand-side explanations for the rise in inequality apply in France when tested using measures of labor cost (as they should be); (b) reforms to payroll taxation, jointly with increases in the minimum wage, can explain a large part of the decrease in net wage inequality, in the context of increasing market inequality.
        %K wage inequality
%K labor cost
%K payroll tax
%K Social Security contributions
%K tax incidence